In this Analysis of "Sterling vs. Japanese Yen" I found the Fibonacci quite a useful tool, as you may have noticed. I found that the 50% Fibonacci level is quite powerful and after a bounce off this level can indicate further bullish moves as we have seen before. Also the 1.618% Fibonacci if achieved can also add confidence for a bull market. Notice on a 1H time frame we see 2 separate Fibonacci confluences which can easily sway anyone to consider a bull position. The question here lies in whether we will see a major or minor pullback. Perhaps even a rally off the bat. In any case a safe bet could be to buy at a test of the 50% Fibonacci level as indicated in the example. Sterling has been pounding away at making new recent highs, you can assume the strength will continue unless proven otherwise. Pullbacks are inevitable and unforeseen but as they say "Trend Is Your Friend" the only concern should be "where do I get on?"
