GBP/USD Price Forecast January 19, 2018, Technical Analysis

The British pound has rallied a bit during the Thursday trading session, reaching towards the 1.39 handle. Given enough time, I believe that the market goes looking towards the 1.40 level, which is the major target above. I believe that short-term pullbacks are buying opportunities, and I also believe that the 1.3650 level underneath is the absolute “floor” in the uptrend. Every time we pull back, I think the buyers will be likely to add to their position, and once we break above the 1.40 level, the British pound will be free to go much higher.

If you follow my work here at Eracash, you know that I believe that the British pound is going to continue to be bullish, and that it has change the overall trend to the downside, and this should continue to have buyers jumping into this market. I believe that the US dollar falling is of course exacerbating this move, so therefore this is one of my favorite markets right now. The market will continue to be very noisy, because of course we have the issues of the negotiations between the United Kingdom and the European Union, so expect sudden volatility.

However, if we were to break down below the 1.3650 level, I think that the market will look to “reset” at the 1.35 handle underneath. I suspect there’s about a 10% chance of that happening, so out of most of the currency trades that I have going on right now, I believe this is one of the more promising ones.

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