GBP/USD Price Forecast – British Pound Continues To Await Election
The British pound has rallied a bit during the trading session on Monday, breaking towards the 1.32 level but has not been over to hang on to those gains. Ultimately though, the British pound is awaiting the election results, and if we can get a Tory majority in parliament, that could give us an opportunity to see the Brexit finally enacted. Ultimately, the market is going to be held hostage to headlines, but if we can get some type of certainty out of Brexit, this could send this market much higher.
GBP/USD Video 10.12.19
From a technical analysis standpoint, we are broken above the top of a major bullish flag, and it supposedly will measure towards the 1.38 level based upon the pole of the flag, but in the short term it’s likely that the 1.33 level above will be targeted in the short term. This is an area that has been massive resistance, and all things being equal it’s likely that we will continue to see a lot of value hunting on pullbacks. I have no interest in shorting the British pound, at least not unless the Labour Party were to suddenly take power, and at this point I think that the 1.30 level underneath should be massive support. All things being equal it’s likely that the market will continue to find buyers on dips, and therefore selling is all but impossible. However, if the election results turn out the wrong way, we could see the 1.28 level tested rather quickly. Expect volatility between now and then but we still have an upward slant.
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This article was originally posted on FX Empire
