GBP/USD Forecast August 10, 2017, Technical Analysis

GBP/USD daily chart, August 10, 2017

The British pound continues to dance around the 1.30 level, as the market seems to be accumulating. I don’t know if we can break out to the upside, but this is an area where we need to see a significant amount of support. If we can break above the 1.3050 level, then I’m a buyer of the British pound as we should continue to go towards the 1.32 handle above. This is a major area, and if we break down below here, I think that the market probably goes looking towards the 1.2850 level. Remember, this pair is going to be highly sensitive to comments coming from London and Brussels, as the divorce proceedings between the United Kingdom and the European Union grind on.

US dollar strength

The US dollar strength cannot be ruled out either, so if we break down pay attention to how the US dollars going against other currencies. If we are starting to see strength against other currencies around the world, then it is a US dollar play, and could continue to see more momentum picked up as traders book for safety. Alternately, if we break to the upside, and the US dollar selling all, that should give us a little bit more momentum to the upside and more importantly: confidence.

Written by FX Empire