GBP/USD Forecast May 2, 2017, Technical Analysis

The British pound continues to march higher during the Monday session, and as you can see I have a trendline on the hourly chart showing that we have seen buying pressure again and again. I believe that the market is trying to get to the 1.30 level above, which is a large, round, psychologically important number. Having said this, I believe that there will be pullbacks from time to time, but those should be thought of as value. Even if we break down below the uptrend line, I believe that the market will find plenty of buying pressure underneath and that the 1.2750 level is the “floor” in the market. After all, that was an area that was massively resistive on the daily charts, so it makes sense that we should continue to see buyers in that general vicinity.
While I do anticipate that the 1.30 level will cause some type of reaction, I believe it will be short-term at best. I believe that it’s a market that is trying to get to the 1.3450 level above, as it was the top of a consolidation area on longer-term charts. While there has been much discussion about the negotiations between the European Union and the United Kingdom, the currency markets seem to believe that the British pound is going to continue to be a viable and strong currency. Ultimately, this is a market that should continue to find buyers on dips and unless something drastic happens, I believe that buying is the only thing you can do in the GBP/USD pair, and I believe that the British pound will continue to be one of the stronger currencies in the Forex world. I have no intentions on selling this market anytime soon, and that we have begun a longer-term “super cycle.”
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