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GBP/USD Price Forecast February 13, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Feb 13, 2018, 04:37 UTC

The British pound initially tried to rally during the trading session on Monday, reaching towards the 1.3875 level, but then rolled over from there. This is an area that has seen a bit of supportive action in the past, so it makes sense that market memory would dictate resistance. However, I believe that this pair does rally over the longer term.

GBP/USD daily chart, February 13, 2018

The British pound has rallied initially during trading on Monday, but as you can see has struggled after that. Ultimately though, I do think that there are buyers underneath, but we may need to pull back to retest the 1.3650 level underneath. That is an area that has been extraordinarily resistive in the past, so it makes sense that we could see a lot of support there as it was the scene of a major breakout. In fact, I believe that the closer we get to that level, the more value you are starting to see in the British pound itself.

Longer-term, I think that we are going to go much higher, especially considering that the Bank of England was a bit more hawkish in its statement than expected. A lot of this will come down to risk appetite though, which seems to be taking a bit of a beating as of late. Longer-term, I anticipate that 1.45 will be targeted, but in the short term I think the sellers still run this pair, at least until we can break above the 1.39 level, which would show that the buyers are willing to fight. The 1.40 level after that of course is going to offer resistance as well, but I think that waiting for value in picking up this pair at a lower price is probably going to be the best way to go.

GBP/USD Video 13.02.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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