GBP/USD Forecast November 2, 2017, Technical Analysis

GBP/USD daily chart, November 02, 2017

The GBP/USD pair dipped a little bit at the open on Wednesday, but then bounced enough to reach towards the 1.33 handle. We then pull back from there to reach the 1.3250 level underneath, which has been an area of attention for the British pound traders. The 24-hour exponential moving average is currently looking to roll over, so we can break down below the 1.3250 level, then the market could go down to the 1.32 level underneath. Ultimately, this market should continue to go higher, because quite frankly we have made a “higher high.” The market should continue to be choppy, but I think that we are trying to get to the 1.35 level above. Ultimately, the 1.3650 level continues to be overall resistance for the longer-term trader, but once we can clear that area, this market can explode to the upside longer term.

I’m currently looking to buy dips in this market, so even if we do break down below the 1.3250 level, I will wait to see if the 1.32 level holds. If we break down below there, the market then goes down to the 1.31 level after that. On pullbacks, I think that it’s only a matter of time before the dip would attract value hunters, as we have seen such a strong bullish pressure. It’s not until we break down below the 1.30 level that I would consider the uptrend truly threatened, and because of that I like the idea of picking up little bits on value. I would build my position, and then hold on to it if and when we can finally break above the 1.3650 level above. At that point, it becomes more of an investment than anything else. The question then remains whether you can be patient enough to take advantage of that type of situation.

Written by FX Empire