GBP/USD Price Forecast March 9, 2018, Technical Analysis

GBP/USD daily chart, March 09, 2018

The British pound went sideways overall during the trading session on Thursday, as we are starting to test a minor uptrend line. This uptrend line will probably give way, and if it does I think will go looking for support at lower levels. Alternately, if we bounce and go above the 1.39 level, then I think the market is free to go to the 1.40 level. Overall, the US dollar has done reasonably well during trading, and that could be more what’s driving this market than anything else. I don’t think that it has much to do with the British pound and seems to be more of a dollar centric move.

I believe that there is support near the 1.38 handle, and then lower than there at the 1.3750 level. I anticipate that there will be an opportunity to pick up value, but we probably need to see the 24 hours of stability before you do that. Although this is technically a cell signal if we break down a little bit, I’m not looking to put money to work as the risk to reward ratio simply is not there. If we can finally break above the 1.40 level above, that could free this market to go to the 1.43 level after that, as it should start looking towards the most recent highs again. Expect a lot of noise, the British are still going through the negotiation process with the European Union.

Written by FX Empire