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

The British Pound futures are poised to extend their rally

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