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GBP/USD Price Forecast – British Pound Bounces For Major Level

The British pound has bounced during the trading session on Friday as we await the parliamentary vote. The 1.30 level of course is crucial for markets structural integrity, as it was the top of the previous bullish flag.
Christopher Lewis

The British pound has bounced a bit during the trading session on Friday, directly from the 1.30 level. This is an area that of course will continue to cause a lot of noise as it was the top of the bullish flag from before. The bullish flag suggesting that the market is ready to go much higher, and measures for a move towards the 1.38 level. The 1.35 level between here and there of course will cause a certain amount of resistance, and I think that given enough time we will break above there. However, there is a lot of uncertainty when it comes to Brexit yet again, but the fact that it’s actually going to finally happen is part of what is lifting the British pound overall.

GBP/USD Video 23.12.19

The market had rallied so significantly during the session after the election results that it had to give some of those gains back. Now it appears that people who are trying to join that larger uptrend should continue to attract monetary inflows. Given enough time, this is a market that will probably find plenty of reasons to go long, but that doesn’t mean that it’s going to be easy. I prefer buying dips and adding slowly as the market continues towards the crucial 1.3250 region, the 1.35 handle, and then eventually the target of the 1.38 level. If we were to break down from here, the entirety of the flag that extends down to the 1.28 handle should be supportive and I suspect will attract a certain amount of interest.

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