GBP/USD Forecast August 8, 2017, Technical Analysis

GBP/USD daily chart, August 08, 2017

The British pound went sideways during most of the session on Monday, but did dip a little bit as the Americans came on board. It looks as if we are going to test the 1.30 level underneath, and that is an area that I think is vital for the buyers to hold. If we were to break down below that level, I think the next target would be the 1.2850 level, and a breakdown below there would kill any hope of an uptrend for the British pound.

The alternate scenario

I believe if we can break above the 1.3075 level, the market should continue the uptrend and we will go looking towards 1.3150 level, and beyond after that. The longer-term target would be the 1.3450 level, but I think that the one thing you can count on is a lot of noise due to the negotiations between the United Kingdom and the European Union. Currently, looks as if the US dollar is gaining favor in the Forex world, so we could very well see the breakdown that I mentioned. In the short-term, looks as if the market may be willing to bounce from the 1.30 level in a tight range to about the 1.3060 level, so short-term back and forth trading could be possible as well. There are no economic announcements that should have much of an effect on this market, so we could be entering a phase of consolidation as we trying to figure out what to do with the 1.30 handle.

Written by FX Empire