GBP/USD Price Forecast November 24, 2017, Technical Analysis

The British pound and tried to rally during the trading session on Thursday, but struggled at the 1.3333 level. This is an area that I think being broken to the upside would be an extraordinarily bullish sign, and perhaps send in the market to the 1.35 handle, and then the ultimate level, the 1.3650 level which was the scene of the breakdown after the surprise vote to leave the European Union. I believe that the pullback that we are witnessing now is probably an attempt to build up the necessary momentum to finally break out. I look at the 1.3250 level as very supportive, as there is a lot of order flow near there and I think that the market should find plenty of buyers there. I think that once we break above the 1.3333 level, I’ll be adding to a long position, as I am hoping to have a large position once we finally break out above the 1.3650 level in a more “buy-and-hold” strategy.
In general, dips continue to be buying opportunities but if we were to break down below the 1.32 handle, it’s likely that we would continue to see selling pressure to send the market even lower, perhaps finding the 1.30 level after that, which should be massively supportive. I think that the US dollar will continue to struggle against most currencies though, as the US Congress can’t seem to pass tax reform, which is something that helped the greenback previously as the Republican administration looked to be very business friendly. I do believe that eventually the British pound rallies much higher, because we are historically cheap, regardless of the move out of the European Union. In general, I’m a buyer but I recognize that picking the right spot is paramount.