September British pound futures (B6U25) present a buying opportunity on more price strength.
See on the daily bar chart the September British pound futures that prices are trending higher and this week hit a 3.5-year high. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator has just produced a bullish line crossover signal, whereby the red MACD line has crossed above the blue trigger line. The pound bulls are in firm near-term technical control to suggest more price upside in the coming weeks.
Fundamentally, the U.K. economy has shown signs of gradual improvement the past few months, including a better job market and increased consumer spending. The U.K. is in good standing with its global trading partners, including the U.S.
In the meantime, the U.S. continues to work on improving its trade relations with its major counterparts, but the U.S. still has a way to go. That favors the British pound over the U.S. dollar that has been depreciating over the past few months.
A move in September pound futures prices above chart resistance at this week’s high of 1.3777 would become a buying opportunity. The upside price objective would be 1.4350, or above. Technical support, for which to place a protective sell stop just below, is located at 1.3500.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
