GBP/USD Price Forecast January 29, 2018, Technical Analysis
The British pound has been very volatile during the session on Friday, but quite frankly with the greenback losing the fight against most other currencies around the world, it’s likely that this pair will eventually find buyers. I would anticipate at the 1.40 level, there should be a massive amount of support, and there should be plenty of people willing to take advantage of that area. I think a bounce from that area makes a lot of sense, but quite frankly wouldn’t surprise me if we couldn’t get down to that level. Longer-term, I anticipate that the British pound is going to go looking towards the 1.45 level next, and then eventually the 1.50 level. Add slowly, but add on dips, don’t jump in with both feet. Longer-term, I believe that the market will continue to find reasons to go higher, not the least of which will be that the death of the British economy was prematurely reported.
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If we did breakdown below the 1.40 level, I think that it is more of a “zone” than anything else, giving us an opportunity to form quite a bit of bullish pressure. If we break down below the 1.39 level, then I think the uptrend is completely over, and we could breakdown to the 1.35 handle. Ultimately, this is a market that has about a 90% chance of going higher.