FX Empire

GBP/USD Price Forecast November 27, 2017, Technical Analysis

The GBP/USD pair initially fell slightly during the day on Friday, and then bounced significantly to clear the 1.3333 level. However, we turned back around to test that area and then ended up forming a hammer on the hourly chart. Because of this, I believe that the market will probably try to rally today, as … Continue reading GBP/USD Price Forecast November 27, 2017, Technical Analysis · FX Empire
Christopher Lewis
Updated

The GBP/USD pair initially fell slightly during the day on Friday, and then bounced significantly to clear the 1.3333 level. However, we turned back around to test that area and then ended up forming a hammer on the hourly chart. Because of this, I believe that the market will probably try to rally today, as this is an area that has been resistance in the past. The fact that we are closing towards that level at the end of the Friday session tells me that any bit of bullish pressure at the open on the session probably clears that area, and sends the British pound looking towards the 1.35 handle above, and then eventually the 1.3650 level after that. There is a massive gap there on the weekly chart, and because of that I believe that breaking of that level would be a longer-term “buy-and-hold” scenario.

The meantime, I believe that every time we rally and pull back, those pullbacks will be buying opportunities that we can take advantage of by adding incrementally, we can build up a large position for the eventual buy-and-hold situation, and benefit from what could be a multi-your trade. Alternately, if we were to break down below the 1.32 level, the market could then go looking towards the 1.30 level after that. In general, I do prefer the upside, mainly because of the US dollar falling and suffering at the hands of the U.S. Congress not being able to pass significant tax reform. Because of this, I believe that we will continue to see buyers in this market, and that selling the pair is very unlikely to be prudent. This isn’t to say that we won’t get significant pullbacks, I anticipate those, but again look at it as value.

GBP/USD Video 27.11.17

This article was originally posted on FX Empire

More From FXEMPIRE:

and

Recommended Stories