GBP/USD Forecast August 17, 2015, Technical Analysis

Christopher Lewis

The GBP/USD pair fell initially during the day on Friday, but turned back around to form a rather positive candle. By doing so, looks as if the market is ready to continue going further to the upside, and a break out above the 1.57 level should be coming. If and when we get it, this market should then head towards the 1.58 level which of course is massively resistive. We believe that buying this market on a break above the 1.57 level is the only thing to do at the moment, or perhaps buying on pullbacks and show signs of support near the 1.55 handle as we have so many reasons to think that the support should stay in place.

Ultimately, we like the idea that the uptrend line is just below the 1.55 level which of course should be supportive based upon the fact that it is a large, round, psychologically significant number. Beyond that, we see the 100 day exponential moving average just below as well, which of course is a moving average that a lot of longer-term traders will follow. Because of this, a lot of “big money” finds itself in these areas. The uptrend line, the exponential moving average, and of course a large, round, psychologically significant number all add up to a significant amount of support. Down there, we also have consolidation that is obvious, so at this point in time we are very bullish.

The British pound itself has done fairly well against most currencies around the world, and of course has at least held its own against the US dollar. As the US dollar is beating up on most other currencies at the moment, this of course is a very bullish sign. We believe this market goes higher, but quite frankly you may have to hang onto quite a bit of volatility before we get to where we are eventually going to go. Regardless, we have no interest whatsoever in selling this market as long as we are above the uptrend line as it is the definition of an uptrend.


GBP/USD Forecast August 17, 2015, Technical Analysis

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
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.
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.