GBP/USD Price Forecast – British Pound Levitating

The British pound continues to sit around and digest gains after the massive move higher. At this point in time, the market looks as if it is struggling to get above the psychologically and structurally important 1.30 level.
Christopher Lewis
GBP/USD daily chart, November 07, 2019

The British pound has pulled back slightly during the trading session on Wednesday, as we continue to see a lot of choppiness in this general vicinity. The 1.29 level seems to be a bit of a fulcrum for price, and of course the 1.30 level is massive resistance, and as a result it’s likely that we will continue to bang up against that level, but once we do break through it will shoot straight up in the air based upon the inertia that’s building up. What I do like about the bullish case for this market is that it is so historically cheap, and we obviously had a huge push higher.

GBP/USD Video 07.11.19

Something worth paying attention to is that during the Tuesday session there was massive US dollar strength, but the British pound simply sat still. That in and of itself tells you that there is a lot of bullish pressure underneath, and therefore we should eventually get that breakout that I was looking for. The 200 day EMA underneath will offer support, and of course the possibility of a “golden cross” as the 50 day EMA is sloping higher is still obvious, and that of course is a longer-term “buy-and-hold” type of situation.

Based upon the pole of the flag, the market could very well find itself going as high as 1.38 to the upside, but I do see a significant amount of resistance near the 1.33 level as well. There is a lot of flow between the 1.30 level and the 1.33 handle, so expect massive short covering if we do break out to the upside.

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