GBP/USD Price Forecast March 15, 2018, Technical Analysis

The British pound has pulled back slightly against the US dollar during the day on Tuesday, testing the 1.3950 level. By doing so, it shows that we still have a significant amount of resiliency just below, and that dips will continue to be bought to build up the necessary momentum to break above the 1.40 level eventually. Once we do, I think that the market will continue to extend gains, Amy for at least the 1.43 level above, which was the most recent longer-term high. Once we break above there, then the most obvious target would be the 1.45 handle, an area that has a certain amount of psychological significance.

Ultimately, I think that if we can sustain a move above the 1.43 level, it would be a “buy-and-hold” scenario. I do like buying dips still, as the breakout above the downtrend line and the 50-day EMA over the last couple of sessions is a very strong sign indeed. I don’t have any interest in shorting, and I look at the 1.39 level as massive support for what is becoming a significant challenge to a massive barrier above. If we can clear that barrier, I think that traders would become very aggressive to the upside, perhaps reaching towards very high levels over the next several months. This could be the trade of the summer if we get enough momentum to finally break out.