GBP/USD Price Forecast – British Pound Continues To Chop Around

The British pound continues to be all over the place as we have no idea what to do with Brexit. At this point, the market is banking on the 1.30 level, an area that would unleash massive gains.
Christopher Lewis
GBP/USD daily chart, November 20, 2019

The British pound continues to be very noisy, as we bounce around just below the 1.30 level. This is a market that will eventually find its way to break out, but at this point we don’t know what the catalyst will be. That being the case I suspect that the market is going to be very noisy and difficult to deal with, but if we were to break above the 1.30 level it opens up the door to the 1.33 handle given enough time. Based upon the bullish flag that we have been forming, I suspect this pair will eventually find its way towards the 1.38 level above, which is a major move indeed. If we can break above that level, then it will probably have the market go looking towards 1.50 level.

GBP/USD Video 20.11.19

All of that being said, it’s not to say that will be easy nor will it be quick. We are in the midst of a major trend change and these things tend to take several years to play out. At this point, I anticipate that market participants will continue to favor the upside as we form this massive bullish flag that almost everybody on the planet can see at this point. Beyond that, the 200 day EMA underneath should offer plenty of support, and therefore I anticipate that the 200 day EMA underneath offers a bit of a “floor” for traders in general. The 50 day EMA is starting to reach towards the 200 day EMA as well, forming the so-called “golden cross.”

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