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GBP/USD Price Forecast – British Pound Continues To Consolidate

By:
Christopher Lewis
Updated: Jan 6, 2020, 16:23 UTC

The British pound went back and forth during the trading session with a more upward bias than anything else on Monday, as we continue to hang about the 1.3150 region.

GBP/USD Price Forecast - British Pound Continues To Consolidate

The British pound went back and forth during the trading session with an upward bias on Monday as traders came back from what has been a very interesting weekend to say the least. Ultimately, this is a market that has a lot of moving pieces right now, as the Brexit situation will continue to be murky to say the least. Having said that, any signs of potential clarity should be paid attention to, because it should be good for the British pound in general. The markets will continue to be erratic to say the least but ultimately this is a scenario where we have broken to the upside rather hard, and now we are trying to build up enough momentum to make the next major move. In my opinion, it is more than likely going to be to the upside.

GBP/USD Video 07.01.20

That being said, pay attention to the former bullish flag that now offers plenty of support, extending down to at least the 1.28 handle. I do believe that breaking below there could change a lot of things, but in the short term I think that the 1.30 level and the 50 day EMA which is pictured in red on the chart both offer plenty of support as well. I like buying bounces, but I recognize that you need to be in this pair for the longer-term move, as it will probably be very noisy to say the least. To the upside, I think the 1.35 level will offer plenty of resistance, but if we can break above there then we can fulfill the target of 1.38 based upon the bullish flag measurement.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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