GBP/USD Price Forecast March 20, 2018, Technical Analysis

The British pound has exploded higher during Monday trading, reaching well above the 1.40 level, as the downtrend line has been broken solidly, and the large, round number has been broken, I believe that more money will flow into this pair. I have been bullish of this pair for some time, but we needed this catalyst to break through these levels. Whether we can continue to go higher, I think is obvious, but it’s going to be very noisy. There’s a lot of noise between here and 1.43, so I’m not looking for this market to continue this type of momentum, but simply grind its way higher. Remember, there’s a lot of questions as to how many interest rate hikes will be coming out of America, and if it turns out to be for, that will be bullish for the US dollar. Because of that, it could be a very noisy market that we are looking at.

The 1.40 level should be support now, as it was significant resistance. Ultimately, I think that the market will find reasons enough to go higher, but the 1.43 level above is going to be massive noise and resistance, and quite frankly I think the entire area between 1.40 and 1.5 has potential to be difficult to deal with. I still favor the upside, but I’m realistic in my expectations as to how quickly we will achieve higher levels.