British Pound futures were in a downtrend in August, bottoming at the beginning of September in a higher high than the low made in July. Traders’ increased risk tolerance and good economic news from the UK turned fundamentals more bullish this month.
On Sept. 3 it broke the down trendline off the August swing highs. Yesterday saw a big breakout day rally that tested Fibonacci retracement resistance at 16570.
Looking ahead, I would continue to watch the 16570 level; a breach could extend the rally. MACD is in the early stages of a bullish crossover, and a further rally would create a stronger signal. For today momentum is at a high enough level that it may keep a lid on it, but some consolidation would alleviate this pressure and allow for the rally to continue.
The British Pound futures are poised to extend their rally
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