GBP/USD Price Forecast March 8, 2018, Technical Analysis

The British pound has initially pulled back a bit during trading on Thursday, but as you can see the dynamic support at the 50 EMA has offered enough support to cause things to turn around. I believe that the 1.39 level above will be challenged, and if we break above there the market should go to the 1.40 level above. I think that if we can break above that level, we will more than likely try to reach towards the 1.43 level above.
Ultimately, I think if we break down below the 1.350 level, the market probably drops down to the 1.3750 level, perhaps even lower than that. The US dollar continues to struggle against the British pound, so I think at this point on pullbacks we will find plenty of buyers underneath to push this market higher. I have no interest in shorting this pair, as I believe the “floor” in the market is closer to the 1.3650 level underneath, which I think defines where we go next. If we were to break down below that level, then I think the British pound unwinds the move higher that we have seen for some time. Otherwise, if we break above the 1.40 level, the market will continue the overall buying pressure that we have seen recently. That is my base case for this pair, but I do recognize that if we break down below the 1.3650 level, it’s time to start rethinking things.

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