GBP/USD Price Forecast March 22, 2018, Technical Analysis

The British pound has rallied a bit during trading on Wednesday, using the 1.40 level as support. Breaking above that level was important from a technical standpoint, because not only did we break above a downtrend line, but we also broke above a major round number. Because of this, I do think that the proclivity is to the upside but if the Federal Reserve seems to be overly hawkish in its monetary policy statement, that could change things and send the market lower. At this point, I still believe that if we can stay above the 1.39 level, there are plenty of reasons to go long.

GBP/USD Video 22.03.18

Alternately, if we break down below that level, it’s likely to send this market down to the 1.38 level, and then eventually the 1.3650 level. Ultimately, I believe that the British pound is going to find buyers, but the question is whether we can find the buyers here or find them at lower levels. If we get a massive hawkish statement of the Federal Reserve, it’s likely that we could breakdown rather significantly. I believe that there is plenty of reason to think that eventually will go higher, because quite frankly we have seen a tenacity with British pound traders over the last several months, so I think we will find a reason to go higher regardless of the situation, given enough time. It might take patience, and most certainly will probably take a smaller trading position to protect your trading capital, but it does appear that the uptrend is still very much intact going into this announcement.

This article was originally posted on FX Empire

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