The GBPUSD pair bounced during the session on Monday, as the 1.68 level has offered enough support to at least do that. We believe them the British pound has been sold off a bit too much, and as a result we think that a return to the 1.70 level is likely, and as result that’s what we are expecting.

If we can get above the 1.70 level, we feel the market could go to the 1.72 handle after that.

On the other hand, if we get weak candle at the 1.70 handle, we feel that the market will more than likely sell off again.

Editor’s Note: Equity investors/traders can use the Currency Shares British Pound Sterling Trust (FXB, quote) ETF to take positions in the yen without a FOREX account.  The ETF looks to track the price of the British Pound Sterling (GBPUSD), minus ETF fee. The fund seeks to reflect the price of the British Pound Sterling (GBPUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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