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

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