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GBP/USD Price forecast for the week of September 5, 2018, Technical Analysis

Christopher Lewis

The British pound has gone back and forth during the week, forming a bit of an exhaustive and neutral candle. I think that the market has plenty of support below though, so it’s only a matter of time before we go much higher, perhaps reaching towards the 1.45 handle. The 1.45 handle above is resistance, and I think that it extends to the 1.45 level. I believe that area is going to be very supportive, and I think that it’s only a matter of time before we go much higher. Once we do, the 1.45 level will give way to traders reaching towards the 1.50 level above.

If we were to break down below the 1.40 level, then I think the market must go looking towards the 1.3650 level underneath which previously was resistance and should now be very supportive. The US dollar has been struggling all year, and I think that’s going to continue to be the issue going into the end of 2018. I recognize this market as one that could be very dangerous for short-term traders, but if you are willing to take it slow and steady, this could be one of the better opportunities for the next several weeks, if not the next several months. I like buying dips, I have no interest in shorting until we break down below the 1.35 handle, something that I don’t think’s going to happen anytime soon without some type of geopolitical event that has traders looking for the safety of US treasuries.

GBP/USD Video 05.02.18

This article was originally posted on FX Empire