GBP/USD Price Forecast – British Pound Continues Consolidation

There have been several reports about the UK elections perhaps suggesting more of a conservative Parliament gain, and that of course gives a bit of certainty to Boris Johnson being able to leave the European Union. Quite frankly, one of the biggest fears that the British pound traders will have is another referendum. This would throw a ton of uncertainty into the British pound and that’s the last thing it needs now. Quite frankly, the British pound has seen more than enough uncertainty for a lifetime, and now it’s likely that we will react positively to almost anything that is certain.

GBP/USD Video 26.11.19

The 1.30 level above is resistance, and if we can break above there it would kick off the next major move in this pair. Just below at the 1.2750 level, I think there is a significant 50 PIP resistance barrier reaching towards the 1.28 level. Underneath that we have the 50 day EMA crossing the 200 day EMA and getting ready to fire off the “golden cross” that a lot of longer-term traders will pay attention to. At this point, the market is likely to continue to go higher because of that as well, as it is a major signal. Overall, even if we were to break down below there, the 1.25 level underneath would be support as well. I have no interest in shorting the British pound unless of course we get some type of shock result from the election at this point.

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