GBP/USD Price Forecast March 6, 2018, Technical Analysis

The British pound has rallied a bit during the trading session on Monday, reaching towards the 1.3825 handle. If we can break above to a fresh, new high again, I think that the market will continue to be a “buy on the dips” situation, as we have been grinding in general. Pullbacks continue to offer support, especially considering that we are now above the 50 EMA, which tends to offer a bit of psychological support or resistance.

I believe that the 1.40 level above will be targeted, but it may take a lot of momentum to get to that area, so I don’t think it could be a straight shot. I believe that the market will pull back occasionally, but I also believe that value hunters are more than willing to get involved. A break above the 1.40 level sends this market to the next major level, the 1.41 handle, and I think that is what we will eventually see. Expect a lot of volatility, but it’s only a matter of time before the momentum picks up. I believe that the 1.3700 level underneath should offer a bit of support, and I also believe that we have even more support below there at the 1.3650 level. Ultimately, selling isn’t something I’m interested in doing until we make a massive breakdown, something that doesn’t look likely to happen based upon the recent action. A clearance of the 1.36 level would change the overall outlook for the market though from what I can tell.

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