GBP/USD Price Forecast December 7, 2017, Technical Analysis

The British pound fell during the day, but I still believe that the 1.3333 handle should continue to offer a significant amount of support, and therefore think that a bounce is probably coming. At that point, the market should then go to the 1.35 level above, which of course has often offered resistance. A break above there then frees the market to go looking towards the 1.3650 level above, which is a massive gap that offers massive amounts of resistance. A break above that level allows this market to be a “buy-and-hold” market, going forward we could find this to be a “buy on dips” situation. In fact, I believe that a break above that gap is a signal to take a much larger position. In the meantime, I suspect that a short-term factor in this market is that we need to keep a small position. Later on though, I fully anticipate being large in this pair to the upside.

Alternately, if we do break down below the 1.3333 handle, then I think that we should probably step off this market for a while, and wait for clarity. However, I think that’s very unlikely, and I will be adding on the move higher in a slow manner. Again though, if we can break above the top of the gap, then it becomes a large position just waiting to happen. At that point, I would expect the market to go to the 1.40 level, and then eventually to the 1.45 handle after that. There will be a lot of volatility due to the negotiations with the European Union, but eventually I think owning the British pound will be the way to go.

GBP/USD Video 07.12.17