GBP/USD Price Forecast February 20, 2018, Technical Analysis

The British pound has broken down during the trading session on Monday, slicing through the 1.40 level, reaching down towards the 1.3950 level. The market extends support down to the 1.39 level as well, but I think that the overall attitude of the market will eventually be bullish. · FX Empire

Christopher Lewis

Updated Mon, Feb 19, 2018, 9:41 PM

The British pound has broken down below the 1.40 level, and now looks likely to bounce around in lower levels. However, I think if we break above the 1.40 level, the market should then send the British pound closer to the 1.4150 level, and then eventually the 1.45 level above. I think given enough time we should continue to see buyers going higher, as the momentum trying to pick up continues to be the story overall. I believe that the US dollar is going to continue to suffer longer-term, and therefore that should push this pair higher. I believe that the market should continue to find buyers on dips, and I believe that it’s only a matter of time before we do in fact rally.

I believe that the 1.3850 level below is massively supportive, and I think it is essentially going to act as a “floor” in the short term, but I also recognize that the longer-term support level to be found at the 1.3650 level underneath, thereby keeping us in an uptrend in general. I recognize that there is a lot of noise above, extending to the 1.45 handle, and a break above that level should send this market much higher, perhaps reaching towards the 1.50 level after that. Ultimately, I think that the markets will continue to be very noisy, but the overall rout in the US treasuries could continue, and if that’s the case in the future, that will continue to put upward pressure on this pair.