The British pound has rallied significantly during the trading session on Monday, as the Brexit Party leader Nigel Farage has suggested that a hung parliament is very possible. At this point, people start buying the British pound under the hopes that perhaps the British shortly the European Union, or at least it will drag out the situation even further. At this point in time it looks as if the 1.30 level will continue to be a major barrier that will take a lot to get through. At this point, it’s very unlikely to break through there without some type of big news, so in the short term it looks like dips will continue to be bought.

GBP/USD Video 12.11.19

To the downside, the 200 day EMA should offer plenty of support, right around the 1.20 level. At this point, the market continues to see a lot of noise between the two areas, but one thing that could be said is that it looks like we are trying to form some type of bullish flag, and that of course is something that the entire market sees. If the market was the break above the 1.30 level, then it could reach towards the 1.33 handle, which is the significant resistance that we have seen in the past. At this point in time, the market could go as high as the 1.38 level, based upon the pole of the bullish flag that we have been forming.

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This article was originally posted on FX Empire

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