GBP/USD Forecast May 23, 2017, Technical Analysis

The GBP/USD pair had a very volatile session on Monday, as we continue to see the market undulate back and forth with all the massive headlines to keep crossing the wires. As the negotiations about the United Kingdom leaving the European Union continue to dominate where this market is going, expect quite a bit of volatility. The 1.3050 level above seems to be offering short-term resistance, but I still believe that this pair goes higher over the longer term. That’s not to say that we won’t get pullbacks occasionally, but those should continue to offer value. I believe that the 1.2975 level is starting to act as support, and that we will continue to grind higher. A break above the 1.3050 level shows that the market would continue to go much higher, and that we are starting to pick up more momentum. I think that this is going to be a difficult move, but ultimately it still appears as if the buyers are running the show longer term. I think that we will continue to see choppiness with a slightly upward bias that you can take advantage of.

Buying on dips

Using short-term pullbacks for buying opportunities would be a good way to take advantage of the bullish pressure that we have seen, and I believe that we are going to try to reach the top of the previous consolidation area, which is at the 1.3450 level above. It’s going to be a difficult market to deal with, but I do think that we are forming some type of ascending triangle as well, and that of course suggests that we do have a significant amount of bullish pressure building. Based upon the measurement, the market should then go to the 1.32 level, but I think we have even further to go based upon the longer-term charts. Ultimately, I have no interest in selling.
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