GBP/USD Price Forecast December 20, 2017, Technical Analysis

GBP/USD daily chart, December 20, 2017


The British pound has been very volatile during the trading session on Tuesday, breaking down slightly, but then rallied significantly. However, that was short term thinking, as we rolled over towards the 1.3333 handle underneath. That’s a level that has been important more than once, and it’s an area that I paid quite a bit of attention to. I think that a bounce in this area is likely, and therefore I’m looking for some type of support, or a bounce that I can take advantage of. I believe that the support extends down to the 1.33 handle, as it is more of a “zone” than anything else. I believe that given enough time though, the buyers will come back in and push this market to the upside, perhaps the 1.35 handle. I think that the British pound will eventually be bought as traders come to grips with the results of negotiation between London and Brussels.

If we were to break down below the 1.33 handle, then I think the market could go down to the 1.31 handle. There’s a significant uptrend line underneath that could keep this market afloat as well, so I feel it’s only a matter of time before we go higher. If we can break above the 1.35 handle, the market then goes looking towards the 1.3650 level above, which is a massive gap. That Being broken to the upside is a massively bullish sign, and begins a “buy-and-hold” scenario and a longer-term trend change from what I can see. I expect to see that some time in 2018, but right now it looks like we are still trying to build up the necessary inertia to do so.

Written by FX Empire