GBP/USD Price forecast for the week of March 12, 2018, Technical Analysis

The British pound had rally during the week, but the 1.40 level continues to offer resistance. I think that breaking above that level should send this market to the 1.43 level, the most recent high. Overall, I am a buyer of this pair, but I recognize that there is a significant amount of resistance above that will continue to be difficult. However, if we were to break down below the uptrend line, the market will probably unwind back down to the 1.30 level. This is a market that continues to find value hunters jumping in, and this most recent pullback should offer plenty of opportunities for those that are willing to wait for signs of support and of course a rebound.

The market will continue to be very noisy and of course be held hostage by the negotiations between London and Brussels. Ultimately, I think that we will see the upside, but I have a clear area underneath that defiance when it’s time to start shorting. A breakdown below the 1.35 handle is very negative, and a breakdown below the 1.30 level would be catastrophic. At this point, I believe that the buyers are coming back into take advantage of the cheap British pound, but I also recognize that it’s going to be very noisy, so I would keep your position size a bit small in the meantime.

GBP/USD Video 12.03.18