GBP/USD Forecast July 14, 2017, Technical Analysis

The GBP/USD pair initially rally during the day on Thursday, as we continue to bounce around between the 1.29 level on the bottom, and the 1.2950 level on the top. Longer-term, I think that markets will go looking for the 1.30 level above, perhaps reaching towards the 1.3025 handle. I think that we continue to consolidate overall, and this is a simple continuation of that move. If you are not in the market right now, it’s probably best to stay out of it as we are essentially in the middle of 2 major areas. This is essentially the “fair value point” in the current consolidation. The markets are going to be dealing with lower volumes now that we are getting close to vacation season, so I think that we continue to bounce around in general, and will be looking at short-term trades more than anything else.
Range bound trading strategy
As things stand, I believe that the 1.30 level above is an area that on signs of exhaustion traders will come back in and start selling. Alternately, I believe that the 1.28 level below is massively supportive and of course the tracks buying opportunities and buyers themselves. However, when I look at the charts in general, I recognize that we could get sudden volatility due to politician speaking in either London or Brussels, as we continue to negotiate the European Union break away from the British. I think that there is a certain amount of headline risk, but at this point it looks likely that the market is comfortable in this overall consolidation area, so I think that given enough time we will probably bounce back and forth. Once we do breakout of this range, then we can start to discuss trading for longer-term moves.
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