GBP/USD Price Forecast March 1, 2018, Technical Analysis

The British pound has fallen rather precipitously during the trading session on Wednesday, reaching below the 1.38 handle. There is a significant uptrend line underneath though, and I think it will eventually pick this market out. In the meantime, it’s very likely that we may drift towards the 1.3650 level, or the uptrend line which is just around the same region. I believe that the 1.39 level now will be resistance, and I think that breaking above there will be difficult to do, at least not without value hunters coming back into the marketplace. Remember, the US dollar has been very bullish recently, because of higher yields in the United States. Because of this, I think that we are going to have more opportunities to get involved to the upside, but I recognize that it’s going to be difficult to convince people initially. I would need to see 24 hours of stability before I got involved to the upside. Short-term selling of rallies that show signs of exhaustion might be a way going forward, but I think those are short-term trades at best.

Ultimately, I suspect that we are going to see more volatility than anything else, and I personally am more interested in waiting on the longer-term move at lower levels. If we were to break down below the 1.36 region, at that point I think the market unwinds and we go much lower. However, it would take something impressive in the marketplace to make that happen.

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