GBP/USD Price Forecast February 2, 2018, Technical Analysis

The British pound continued the move higher during the trading session on Thursday overall, but we did pull back a little bit as the Americans came on board. I think that the market should continue to be bullish longer-term, and I think that the 1.40 level underneath is the “floor” in the market. Ultimately, I think that the market is trying to reach much higher levels, perhaps the 1.43 level, and then eventually the 1.45 level after that. I think that pullbacks offer value, as the US dollar continues to be very soft overall. However, if we were to reach down below the 1.40 level, the market would probably enter a supportive zone that extends down to the 1.39 level after that.

If we were to break down below the 1.39 level, then I would consider the uptrend essentially broken, and that should send this market even lower. Longer-term, I anticipate that the market will probably look for the 1.45 level on the way to the 1.50 level, an area that will cause a whole lot of noise in the market due to the psychological significance of it. Ultimately, this is a market that should continue to be a “buy on the dips” situation, and I think that longer-term we will find plenty of reasons to go higher, as the British economy will more than likely favor upward expansion. I think at this point, selling is all but impossible. Look for value and take advantage of it.

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