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

The British pound has been very noisy during the trading session on Thursday, as it looks like we are trying to find a bit of support near the 1.3750 level, an area that of course has a certain amount of significance to it. I believe that if we break down from here, we will then go looking towards the 1.3650 level which has much more in the way of significance historically. We had previously seen a lot of resistance in that area, but it now looks likely to offer support. We also have an uptrend line in that general vicinity, so I think it’s only a matter of time before we rally.

It’ll be interesting to see how the level offers support if this move does happen, but I think at this point we are more likely to see buyers interested in this market. I think that the 1.38 level being broken to the upside, that could bring a lot of buyers in to push this market towards the 1.40 level. The longer-term outlook for this market is higher from what I see, but I also recognize that there will be a lot of noise as headlines coming out of the negotiations between London and Brussels could cause bits of skittishness occasionally. However, I think that the British pound has been oversold as of late, so it’s likely that we will continue to correct that selloff and reach to higher levels.

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