GBP/USD forecast for the week of December 25, 2017, Technical Analysis

The British pound rallied a bit during the course of the week, breaking above the 1.3333 handle. That being the case, the market should continue to go higher, reaching towards the 1.35 level above. That is a market level that a lot of traders have paid attention to, and I think that we will go looking towards that level next. If we can break above there, the market should then go to the 1.3650 level. The markets offer a nice long-term buy-and-hold situation from what I see, but there is going to be a certain amount of volatility. If we can break above the 1.35 handle, I think that the market could go to the 1.3650 level. That is an area that being broken to the upside would signify a huge shift in the attitude of British pound traders, as we could go much higher.

Pullbacks at this point should continue to find plenty of support underneath, as the uptrend line is very strong and has been reliable all year. I think at this point, we are going to make some type of decision, I think that the market is going to tell us where it wants to go longer-term over the next couple of weeks. Remember, volume is going to be almost nonexistent for the next several sessions, so I’m not going to read too much into the next candlestick, but once we get into January, we could have a nice long-term trade set up. As things look right now, I suspect that it will be to the upside, but that remains to be seen.

GBP/USD Video 25.12.17