GBP/USD Forecast September 28, 2017, Technical Analysis

The British pound fell significantly during the session on Wednesday, as we continue to bounce around at low levels, especially near the 1.34 level. At this point, the market looks likely to continue to drop from here, as we have seen a significant pullback. Ultimately, I think that the market will probably continue to see volatility, and then eventually buyers. However, I think this pullback has been needed for some time, so it makes sense that we would jump back into these types of moves as they offer value. I think that the market will eventually go looking towards the 1.3650 level above, which was the gap from the Brexit vote. Because of that, I think that a move above there would be psychologically important, and send this market to much higher levels, such as the 1.40 level above.
Looking to buy dips, but not yet.
I believe that the market will offer value on dips, but not quite yet. I think that we still have a negative proclivity on the short-term charts, and I think it’s likely that we will continue to see volatility and perhaps selling. However, I think the given enough time, we will start to focus on the Bank of England getting ready to raise interest rates, and that should be very bullish. If we were to break down below the 1.30 level, that is a longer-term cell signal, but we are I a long way from that level now. Because of this, I think it’s only a matter of time before the buyers return, but obviously I don’t have that trading signal yet. I would wait for a daily supportive candle to consider doing as such. Ultimately, I do believe in buying but I think we are several days away from that opportunity.