GBP/USD Forecast June 30, 2017, Technical Analysis

The British pound rallied during the day on Thursday, touching the 1.30 level. This is an area that I think if we can break above should send this market looking for the 1.3450 level over the longer term. It looks as if we are going to try to do this, but we may need to pull back a couple of times on short-term charts to do so. Once we do, then the market will be a “buy on the dips” type of situation. Between now and then, I would be a bit leery about buying at this high level. That’s not to say that I would sell, rather that patience will probably be needed.
Friday could be quiet
It’s possible that Friday will be a quiet session, because we have seen so much of volatility in the currency markets over the last several sessions. Occasionally, currency markets need to take a breath, and I think this may be one of those times. Beyond that, we have both the Canadian and the US independence days coming up in the next couple of days, and that will drain liquidity out of North America. Because of this, I’m betting that we will probably do very little over the next 24 hours, possibly even into about Wednesday of next week. Nonetheless, I certainly have upward bias, as most of the market does. I certainly wouldn’t want to fight this type of momentum, and I think simply looking for value on pullbacks or better yet, just waiting for a confirmed breakout, is probably the best way to play this market. There of course will be headline risks from the divorce proceedings between the United Kingdom and the European Union, but in the end, it looks as if the market is favoring the British pound.