Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5975
    -0.0000 (-0.01%)
     
  • NZD/EUR

    0.5533
    0.0000 (0.00%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,292.24
    +124.17 (+0.31%)
     
  • NZD/JPY

    90.4500
    +0.0570 (+0.06%)
     

GBP/USD Price Forecast January 2, 2018, Technical Analysis

The British pound exploded to the upside against the US dollar on Friday, as we continue to see US dollar weakness overall. Because of this, I think we are ready to go towards the 1.3650 level above, which has been very important.

The British pound rallied significantly on Friday, reaching above the 135 level, which of course is a large, round, psychologically significant number. By doing so, we have broken another barrier, and I think we are now ready to go towards the next major barrier, the 1.3650 level. It was at that level that we had a massive gap lower that sent the British pound reeling, and I think if we can break above that level, it’s likely that we will see a continuation of the uptrend that we had formed this year. That could send the British pound as high as 1.50 over the longer term, offering plenty of opportunities to buy on dips going forward. I would build my position up slowly, I think this is going to take quite a while to get to, and could be a move towards the end of 2018. In the meantime, I like buying dips, but I recognize that a move below the 1.3333 handle underneath invalidates most of the technical analysis that I have seen lately.

We might be a bit overextended and the short-term, but I think there should be plenty of support near the 1.3450 level as well, so at this point I have no interest in shorting this market, I believe that the US dollar falling is going to continue into the new year, and with the jobs number coming out this week, it’s likely that the volatility will pick up towards the end of the week.

GBP/USD Video 02.01.18

This article was originally posted on FX Empire

More From FXEMPIRE: