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The British pound<\/a> has had a very noisy trading week, rallying to break above the \u00a5185 level, but just as we have seen over the last couple of weeks, anything above the \u00a5185 region is an area that people are struggling to stay upon. The fact that we have formed 3 shooting stars in a row suggests to me that a pullback is probably very likely. The \u00a5180 level underneath is likely to continue to be a major floor for the market, and while it certainly looks like we could have a pullback, I don\u2019t think that it is anything to worry about longer term.<\/p>\n<\/div>\n<\/div>\n On the other hand, if we were to break above the top of the 3 candlesticks, that would be an extraordinarily bullish sign. In that environment, one would have to think there would be massive short covering and possibly even a lot of \u201cFOMO trading\u201d to rise higher. The interest rate differential between the 2 economies remains very wide, and therefore I don\u2019t have any interest in trying to short this market. That being said, it doesn\u2019t mean that it goes straight up in the air the entire time. In fact, I think this is the situation where we are simply going to have to reload at lower levels.<\/p>\n It\u2019s probably worth noting that the liquidity will pick up a bit next week, as traders come back from summer. Because of this, I would expect a lot of noisy behavior, and I think that the market will be very difficult to trade on longer-term charts in the next couple of weeks. That being said, we are still very much in an uptrend, and have to keep that in mind.<\/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