GBP/USD Price Forecast December 27, 2017, Technical Analysis

GBP/USD daily chart, December 27, 2017


The British pound should continue to find buyers underneath, and although the market has been very quiet, most of this can be written off due to the time of year, and of course I believe that the 1.3333 level is of course one of the most important levels on the chart. I think that if we can stay above that level, it is only a matter of time before the markets break out to the upside, and go reaching towards the 1.35 handle above, which of course is a large, round, psychologically significant number. Looking at the triangle on this chart, I think it’s only a matter of time before we get a move, and eventually we will be able to follow it.

If we did breakdown below the 1.33 handle, I think at that point we would probably break down to the 1.31 handle under there, which is supported by not only recent action, but an uptrend line that should continue to be respected. Because of this, it’s only a matter of time before the buyers take over from what I can see. In general, I believe that the markets will eventually break higher, and build up enough momentum to sliced through the 1.3650 level above, which is the signal to start the “buy-and-hold” situation, but it’s going to take a while to do so. In the meantime, short-term pullbacks will be buying opportunities from what I can see. I have no interest in shorting this market, because even if we break down it’s only a matter of time before the buyers come back with even more gusto.

Written by FX Empire