GBP/USD Price Forecast – British Pound Continues To Kill Time Ahead Of Election ResultsThe British pound has gone back and forth during the session on Thursday as the election is going on in the United Kingdom. Quite frankly, most of the traders out there have priced and the idea of a Tory victory.
The British pound has gone back and forth during the trading session on Thursday, as we continue to hang around the 1.3150 level. Ultimately, this is a market that has been rising for some time, and I think at this point there is the possibility of a “sell the news” type of situation. If that does happen, the market probably comes down to the 1.30 level, an area that was previous resistance. Between there and the 1.28 handle, it’s likely that the previous bullish flag should continue to offer a bit of support. This of course would be a completely different scenario if we get some type of Labour Party victory. Ultimately, that will probably crush the British pound as it will for a ton of uncertainty into what happens with Brexit.
GBP/USD Video 12.12.19
From a technical analysis standpoint, it looks as if we are going to go looking towards the 1.33 handle, but we may need the pullback to make that happen. The measured move from the bullish flag that we had broken out of suggests that we could go to the 1.38 handle, but that is obviously a longer-term target. All things being equal, you should take a look at this as a market that you should be buying and not selling and this of course we get a Labour Party surprise. This is a market that will probably be very noisy over the next couple of days, but once things stable out it’s probably going to be more of a grind higher again.
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