GBP/USD Price Forecast – British Pound Breaks Down

The British pound initially tried to rally during the trading session on Monday, breaking below the 50 day EMA which is fairly bearish. However, we are in the middle of the bullish flag that had sent this market higher, so therefore one would assume there should be plenty of support in this area. That being said though, it appears that traders are concerned about the idea of a “hard Brexit”, although we are a good year away from seeing that come into play, although the situation is murky at best. With no news flow after the elections, there will be a lot of people willing to take profit from the massive move that we had seen, I do expect to see a bounce sooner or later.

GBP/USD Video 24.12.19

The next couple of days will more than likely be very quiet and illiquid, and therefore you probably have a world of time to get involved. If the market was to recover and break above the 1.30 level, that would be a very bullish sign and would more than likely have the market looking towards the 1.35 level over the longer term. Alternately, if we were to break down below the 1.28 level, then it opens up the door to a move down to the 1.25 handle. That would of course be a very negative turn of events as we would have given back 1000 pips in a very short amount of time. Unfortunately, 2020 looks like it’s going to be just as volatile for the Pound as 2019 was.

Please let us know what you think in the comments below