GBP/USD Price forecast for the week of March 26, 2018, Technical Analysis

The British pound has been very bullish of the week, breaking through the 1.40 level, and reaching towards the 1.42 level. I think that every time this market pulls back, there will probably be value hunters willing to jump in and take advantage. The 1.43 level has recently been resistive though, so it’s going to take a certain amount of momentum to finally break above there. Even if we do, I see noise extending to the 1.45 handle above.

GBP/USD Video 26.03.18

Because of this, I think that it is only a matter of time before we get volatility, but the volatility coming back should be a nice buying opportunity. It’s not until we break down below the 1.38 level that I would be a seller. It appears that European currencies in general are doing well against the US dollar, and that Mike continue to be the case. The British pound of course has the benefit of an interest rate hikes coming, so that gives you an idea as the trajectory of that currency overall. The United States is currently entering a trade war, so it’s likely that the US dollar will be punished against countries that are staying away from it. Between that and the rising interest rates, it makes sense that the British pound would do well. With the rising inflation, that should continue to attract money into the country, and I believe that we are starting to see the market understand that Great Britain leaving the European Union is not the end of the world.