GBP/USD Price Forecast November 23, 2017, Technical Analysis

The British pound was very volatile during the trading session on Wednesday, as we initially tried to break above the 1.3250 level, but then pulled back to the 1.32 handle. At that point, the market shot through the 1.35 level cleanly, and now looks set to go much higher. Now that we have broken above this level, I believe that we are going to go looking towards the 1.35 level over the next several sessions. With the Thanksgiving holiday today, it’s likely that the US dollar will be somewhat undefended, and therefore it’s likely that the British pound can continue the bullish pressure. I also recognize that the uncertainty around the British economy leaving the European Union does put a little bit of an anchor around the neck of the pound, but longer-term I don’t see a reason as to why this market won’t go looking towards the 1.365 level again, which is the recent high.
If we were to fall from here, it’s not until we break down below the 1.32 level that I would think the sellers would take the upper hand. If that were to happen, and makes sense that we go looking towards the 1.30 level underneath. However, we have been grinding our way to the upside, and it looks as if the tenacity has finally paid off. With this in mind, I think short-term traders will continue to buy dips going forward, as they offer value. A break above the 1.3650 level is a very bullish sign, and sends this market to the 1.40 level above there, which is a major level on longer-term charts as well. In general, I think that the buyers are going to continue to be very aggressive. Ultimately, I believe that we have started to try to turn the trend around longer term.