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The British pound<\/a> has rallied a bit during the course of the week, but gave back the gains. That being said, the \u00a5180 level offers quite a bit of support, as it is a large, round, psychologically significant figure, and an area where we have seen a lot of support previously. If we do bounce from here, and I think it\u2019s probably only a matter of time, then we will probably test the \u00a5184 level given enough time, and then possibly even the \u00a5185 level.<\/p>\n<\/div>\n<\/div>\n The previous week had a massive hammer, and it is not until we break down below there that I\u2019d be concerned about the overall uptrend. Remember, we shot straight up in the air, so it\u2019s not a huge surprise to see that we have had to go sideways for several weeks, and therefore it\u2019s likely that we can continue to see a little bit of churning. If we can break above the \u00a5185 level, then it\u2019s likely that we could go looking to the \u00a5200 level, which is a long-term target of mine.<\/p>\n Keep in mind that the interest rate differential continues to favor the upside, and therefore you get paid to hold onto this trade. I think it\u2019s probably only a matter of time before we see buyers jumping in to ride this potential bullish flag. If we were to break down below the \u00a5175 level, that could change some things, but right now I just don\u2019t see how that happens, and therefore I think it is likely that we see more of a \u201cbuy on the dips\u201d scenario. Ultimately, this is a market that is behaving just how you make it would, as the Bank of Japan has done everything it can to work against the value of its own currency.<\/p>\n For a look at all of today\u2019s economic events, check out our\u00a0economic calendar<\/a>. <\/b><\/p>\n<\/div>\n<\/div>\n