GBP/USD Price Forecast January 30, 2018, Technical Analysis

The British pound has dropped a bit during the trading session on Monday, in what has been a relatively quiet day. The market seems to be taking a bit of a breather, and what has been a very strong uptrend. I look at this chart and recognize that the short-term uptrend line has been reasonably productive, but the 1.40 level underneath is even more supportive, and it is now a significant area where buyers could be involved. The 1.40 level should attract a lot of attention, as it was a major breakout. This pullback has been a bit substantial over the last couple of days, but in the end, it’s likely that the pullback will be looked at as an opportunity to pick up value in what has been a very strong currency. I anticipate that we uptrend line, but at the end of the day it’s not a cell signal, rather it’s a signal to start picking up value closer to the 1.40 level. Alternately, if we break above the 1.4150 level, the market is likely to continue its uptrend that we have seen for some time.

The US dollar has been rather soft as of late, and with the sudden turn in attitude when it comes to the British pound, it could be a bit of a “perfect storm” for this market to continue going higher. I recognize that the 1.43 level above is a significant turnaround in the market, so break above there would be bullish enough to send this market looking towards the next psychologically important level, the 1.45 level.

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