GBP/USD Price forecast for the week of February 19, Technical Analysis

The British pound rallied during the week, breaking above the 1.40 level again. We are giving back some of the gains, but ultimately, I think we are in a range of consolidation, perhaps trying to build up the necessary momentum to break above the 1.43 level. I think the market is heavily supported underneath, and therefore I believe that buying on dips makes sense.
Christopher Lewis
GBP/USD weekly chart, February 19, 2018
gbpusdWEEK

The British pound rallied a bit during the week, breaking above the 1.40 level again. I think that the 1.43 level after that is the next target, perhaps opening the door to the 1.45 level as it is the next large, round, psychologically significant number. The uptrend line underneath should continue to support this market, so it’s not until we break down below the 1.35 level that I am concerned about the overall uptrend. This is an area that of course features a lot of noise, so don’t be surprised if we have a lot of choppy back and forth type of momentum.

The US dollar has been softer some time, and most of the giveback that we had seen on the weekly chart was on Friday, and early in the day for that matter. It looks as if the Americans are willing to sell off the US dollar, so it’s very possible that we may see a continued momentum coming out of the United States leaving the US dollar.

I believe that longer-term, the British pound will continue to climb quite nicely, especially as it appears that the currency markets are starting to doubt the ability of the Federal Reserve to raise interest rates as rapidly as once thought. You can start to see this in the bond markets, and of course against the major currencies around the world.

GBP/USD Video 19.02.18

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US