GBP/USD forecast for the week of July 24, 2017, Technical Analysis

The British pound fell slightly during the week, as we sliced below the 1.30 level. There is a significant amount of resistance just above, and extending to the 1.3450 level. I think that we may try to bounce towards that area again, but it is going to take a significant amount of work, and it’s likely that it will be a very bumpy road to the upside. If we were to break down from here, I think that a move below the 1.2850 level signals that we may drop down to the 1.27 handle. There are a lot of moving pieces in this currency pair, not the least of which is the question as to what the Federal Reserve is going to do over the next several months. As the markets continue to ponder that, it will have an effect on this market. Also, we have the negotiations between the United Kingdom and the European Union which of course has a massive effect on what happens with the British pound.

Expect choppiness

I suspect that you can expect choppiness, but it does seem like we are trying to break the downtrend overall, but these things are normally very difficult to deal with, and tend to be very noisy affairs. A trend change is not easy, and quite often it takes several attempts to actually achieve that goal. Because of this, I believe that the market will be very noisy difficult to deal with but I do think that the buyers are starting to gain the upper hand longer term.

GBP/USD Video 24.7.17