GBP/USD Price Forecast – British Pound Continues To Power Higher Ahead Of Elections

The British pound initially pulled back during the trading session on Wednesday but found enough support underneath the turn around and rally significantly. At this point in time it looks as if the market is ready to go looking towards the 1.32 level, and then possibly the 1.33 level after that. This is a market that has been rallying as it looks likely that we are going to see a conservative Parliament. This gives the markets the ability to perhaps try to continue pricing in the idea of the Brexit actually happening in our lifetime. This is going to continue to be a fluid situation, and as we approach the election results there will probably be a lot of position squaring meaning that the market is going to go back and forth. That being said, pay attention to the election resulted headlines, because quite frankly the more conservative Parliament becomes, the stronger the British pound will become.

GBP/USD Video 12.12.19

To the downside, the 1.30 level should offer significant support, as it was previous resistance. That resistance should be an area that attracts a lot of attention but if we get some type of shock result from the United Kingdom, then this pair could very well break through there and go looking towards the 1.28 handle. All things being equal though, this is a market that should have further to go and based upon the bullish flag we could go as high as the 1.38 handle over the longer term.

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