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GBP/USD forecast for the week of January 2, 2018, Technical Analysis

Christopher Lewis

The British pound has rally during the week, breaking above the top of the last few weeks, breaking above the top of the shooting star like candles. Because of this, it looks as if the British pound is going to continue to find buyers, and the short-term dips will probably offer value that you can take advantage of. I believe that the 1.3650 level above is a massive resistance barrier, but right now it looks as if it will be broken given enough time. The weekly candle is strong, and the uptrend line just below looks to be offering quite a bit of support as well. Because of this, I believe that the 1.3333 handle is now offering a bit of a floor in the market, and it’s only a matter of time before we not only break above the 1.3650 level, but continue to go much higher. I think that the British pound is probably going to be one of the better performers during the beginning of the year, and I think it’s only a matter of time before the buyers jump all over this bandwagon.

Ultimately, I think that the market will go looking towards the 1.40 level, but you need to be able to deal with a lot of volatility, as these moves typically take a lot of momentum. We have a jobs number coming out later in the week, that of course can move the markets as well, but I think ultimately that the uptrend in general should continue to hold as it did during the entirety of the year.

GBP/USD Video 02.01.18

This article was originally posted on FX Empire