GBP/USD Price Forecast February 26, 2018, Technical Analysis

The British pound has been a bit noisy during the trading session on Friday, as we continue to jump around just below the 1.40 level. If we can clear that area, and perhaps even the 1.4050 level, the market should continue to rally, which is my longer-term outlook for the market. I think that if the market breaks above here, the market should then go to the 1.43 level next. That’s an area that has been resistive, and when I look at the longer-term charts, an area that begins a noisy bit to the 1.45 handle.

Ultimately, I believe that the market will find buyers on dips, and we should continue to see plenty of reasons to go higher. I believe that the 1.39 level is going to act as a bit of support, as we have seen it tested during the Friday session, and watched it perform quite nicely. Longer-term, I believe that the British pound goes much higher, so I don’t have any interest in shorting, at least not until we break down below the 1.3650 level underneath, which I see as the bottom of the uptrend. In the meantime, short-term traders will continue to jump in, and to take profits as soon as possible as we are in the middle of fighting a major resistance zone that extends a couple of handles. I think that eventually, the market becomes a buy-and-hold scenario, but we obviously have a lot of work to do.

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