GBP/USD Forecast September 12, 2017, Technical Analysis

The British pound initially tried to rally during the day on Monday, but continues to find resistance just above the 1.32 handle. I had recently talked about the 1.3250 level being massively supportive, and now I think we are starting to see that. If we are to break down below the 1.3150 handle, at that point I feel comfortable shorting. Alternately, a move above the 1.3250 level was very bullish. As things stand right now, I am a bit suspicious of this recent rally, and I think we may see a turnaround. However, I have learned a long time ago that you should let the market tell you what is going to do and simply follow it. Trying to guess is a great way to lose money.

On the move…

If we do breakout above the 1.3250 level, then I believe that the market will probably go looking to the 1.35 handle for the next target. There’s a lot of noise just above there, so I don’t know if we break above that level so easily. Alternately, if we break down below the 1.3150 level, I think the market probably goes looking towards the 1.3050 level after that. That being the case, I think if you are patient enough, you should have the market telling you want to do soon, and simply follow. The British pound continues to have a lot of headwinds in various directions, mainly because we don’t know how the divorce from the European Union is going to work out in the long term. With that in mind, is very difficult to have faith in the British pound over the longer term. Add leverage your position, and it becomes very uncomfortable at times, and I think that’s part of what we are seeing in the Forex markets.

GBP/USD Video 12.9.17