GBP/USD Forecast September 29, 2017, Technical Analysis

The GBP/USD pair initially fell during the day on Thursday, reaching down towards the 1.3350 level. However, we turned around to bounce significantly, only to see resistance at the 1.3450 level. I think this market continues to be very noisy, but to me it looks as if we are going to consolidate in this general vicinity more than anything else right now. Longer-term, it’s likely that we continue to go higher but I don’t see a reason to go into the market hand over fist quite yet. If we break above the 1.3450 level, then it’s time to start buying in my estimation. Alternately, if we break down below the 1.3350 level, the market could go lower, perhaps reaching towards the 1.33 level, and then down to the 1.30 level over the longer term.
The Bank of England looks likely to continue to sound hawkish, so of course if we get stronger than anticipated GDP numbers coming out, then we could see the market start buying the British pound again. Alternately, if it’s weaker than anticipated we could see it fall from here. I believe that the 1.3650 level above is a massive resistance barrier, and if we can break above that, it’s a longer-term “buy-and-hold” trade just waiting to happen. I think that the market continues to be jittery, but ultimately, we should continue to see a lot of interest in the British pound. It had recently surged much higher, and recently has been pulling back to build up momentum again. I believe that longer-term we are going higher, but it’s likely that the market got a bit ahead of itself, and therefore had to roll over to find its footing. I believe that we will eventually go looking towards the 1.40 level.