GBP/USD Price Forecast March 14, 2018, Technical Analysis

The British pound has rallied significantly during the trading session on Tuesday, as we have broken above a downtrend line that the market has been paying attention to for some time. I think that the 1.40 level will be targeted next, but I think we could break above there. It’s likely that we may have to pull back a few times to build up the necessary momentum to break out, but that isn’t necessarily unusual. I believe that the 1.39 level underneath should offer support, and I think that support should extend down to the 1.38 level.

Ultimately, this is a market that should go looking towards the 1.43 level above, an area that has offered massive resistance. I think we will eventually break above there and go looking towards the 1.45 handle. I think that short-term pullbacks could be buying opportunities as well. Ultimately, I think that there is a lot of noise in the Forex markets currently, but it seems as if we are starting to take on more risk, and that will course have the US dollar being sold off. Ultimately, I do think that we are historically cheap when it comes to the British pound, and I think we will continue to see buyers jump into this market because of this. It’s not until we were to break down below the 1.38 level that I would be concerned, something unlikely to happen.

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