Patience Will Be NecessarySo, with this, I think you have to be a little bit patient, but if you are bullish of the pound or perhaps even bearish of the US dollar based on the idea that the Federal Reserve may cut in September, you probably have to wait to see if we can break above the top of the inverted hammer from the previous session, and perhaps even more importantly, break above the 50-day EMA. Start Trading Today With The Best Trading Platform!
This is a market that is typically choppy, as you can see on longer-term charts, but it seems as if the trajectory continues to look like it’s trying to find its footing. A breakdown below the 200 day EMA could blow the narrative right out of the water, so we’ll have to wait and see how that plays out. But I think given enough time, we should get a little bit of clarity. 
One of the most important things you can watch over the next day or two is how we close out the week. After all, traders will tell you what they really think when they close their positions out or choose not to close their positions out heading into the weekend when they could be facing a massive gap on Monday morning. Because of this, if we see a move to the upside and it’s sustained into the close on Friday, I’d say that’s a really bullish sign. Obviously, the exact opposite could be true as well.More By This Author:Gold Forecast: Continues To See Massive Choppiness
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