FXEMPIRE
All

GBP/USD Price Forecast – British Pound Continues To Find Buyers On Dips

The British pound pulled back a bit during the trading session on Wednesday, only to find buyers underneath in turn things around. At this point, the market is continuing to build up a case for higher movement, based upon the flag.
Christopher Lewis
GBP/USD daily chart, November 21, 2019

The British pound pulled back slightly during the trading session on Wednesday but continues to find buyers on dips, as the 1.29 level has offered a significant amount of support. That being said, it looks as if we are going to continue to try to reach towards the 1.30 level, an area that will attract a lot of attention as it is a large, round, psychologically significant figure, and an area that had been previous support, so now it makes sense that it would be resistance.

GBP/USD Video 21.11.19

The 200 day EMA sits just below the flag, so that of course is a bullish and supportive sign. The 1.2750 level underneath is an area that is important from a structural standpoint, and now that we have the 50 day EMA reaching towards the 200 day EMA, we could get the so-called “golden cross” that attracts a lot of buying. Regardless though, I have no interest in shorting this market, and I believe that the 1.25 level underneath is also going to be supportive as it is a major round figure.

The flag suggests that we are going to go looking towards the 1.38 level above, but the 1.33 level will cause some resistance above as it has shown itself to be resistive previously. Breaking above there then it opens up the door to the bigger move. I do believe that the market is going to continue to favor the upside as it is historically cheap at these levels, and I anticipate that this could be a multi-your move just waiting to happen.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US