GBP/USD Price Forecast March 12, 2018, Technical Analysis
The British pound has rallied significantly during the trading session on Friday, as the jobs number in the United States for the month of February came out strong. Because of this, it looks as if we are starting to see a bit of a “risk on” move, and I believe that the market will eventually reach towards the 1.39 level, sending this market towards the 1.40 level after that. Overall, I believe the pullbacks will continue to offer potential buying opportunities, but I recognize that it will be very noisy overall, so it’s difficult to imagine putting a lot of money into this market. However, if we can break above the 1.40 level, the market can continue to go much higher, perhaps reaching towards the 1.43 level eventually.
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The 1.38 level underneath should offer short-term support, and I believe that every time we pull back there will be value hunters coming into this market place. However, I would start out with small positions, as the volatility should be rather large. If the market moves in your favor, then it’s okay to start adding, but in the meantime, it’s going to be very difficult to go in with both feet, and therefore I think that this is a marketplace that will continue to cause a lot of concerns and nervous trading until we can break above the resistance barrier. Expect a lot of noise, but at this point I believe in the uptrend still.