GBP/USD Price Forecast December 1, 2017, Technical Analysis

GBP/USD daily chart, December 01, 2017

The British pound initially rally during the day on Thursday, but then pulled back a little bit to find buyers again at the 1.3435 level. The market has since broken above the 1.35 level, only to find sellers again. I think we are going to continue to try to stairstep to the upside, given enough time looking to reach towards the 1.3650 level above. Ultimately, this is a market that continues to be one that I think is trying to build up enough momentum to finally break out to the upside and above the massive gap at the 1.3650 level. Once we get above there, becomes more of a buy-and-hold situation, reaching towards the 1.40 level. However, in the meantime I think there will be a lot of volatility and we may have gotten a little bit ahead of ourselves. Currently, the 1.3333 level should be the “floor” in the market, and if we can stay above that level I think that it’s a one-way market.

However, if we did breakdown below the 1.3333 level, the market could drop to the 1.32 handle underneath, which is the next support of level. I think at that point, we must start thinking that perhaps the British pound is going to lose a significant value. At this point, I believe that the British pound continues to go much higher, perhaps based upon the idea of the United Kingdom finally getting some type of agreement with the European Union, although we have not actually done so yet. We do seem to be getting closer, and that of course will eliminate a lot of uncertainty.

Written by FX Empire