In my previous posts made on April 10 and on May 4, I warned about a potential trend reversal in the UK sterling and that I would buy the British pound if it could break out above the resistance at 1.5000. This did indeed occur and the pound index is now trading at 1.6492 (see above chart).
The related ETF (Rydex CurrencyShares British Pound Sterling Trust ETF, ticker: FXB) is now trading at 164.83$ versus 146.56$ when I made my post on april 10.
Now what? the next resistance level appears to be at 1.6600. If the GBP breaks out above it, we might be heading towards a new uptrend. I would then buy the ETF FXB at around 166$. Stay tuned!
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