GBP/USD Price Forecast March 7, 2018, Technical Analysis

The British pound has rallied significantly during the trading session on Tuesday, reaching towards the 1.39 level. The 1.39 level is the beginning of resistance that extends to the psychologically important 1.40 handle. That level should be massively resistive, but I think we are trying to build up enough momentum to finally make that move above there and reach towards the 1.43 level again. I like the idea of buying dips, and I think that traders will continue to look at the US dollar as a currency that should be sold, especially considering that some of the fears of trade wars are starting to abate.

The 50 EMA on the hourly chart seems to be relatively stable as far as dynamic support and resistance is concerned, and I think it gives the opportunity to take advantage of recent behaviors. It’s not until we break down below the 1.3650 level that I’m willing to sell this pair, as I believe that the British pound is historically cheap, and most of the market probably feels the same way. Beyond that, the US dollar has been selling off in general, except for the past couple of weeks, and I think that we will continue to see this market reach towards the upside. If we can clear the 1.43 level, then the market should then go to the 1.45 handle after that. One thing I think you can count on is volatility but take advantage of it when we do get these pullbacks.

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