GBP/USD Price Forecast – British Pound Pulls Back

The British pound has pulled back a bit during the trading session on Tuesday, as we continue to see the market consolidate in general. This is a market that has been consolidating a bit for some time, as we await clarity when it comes to the UK elections.
Christopher Lewis
GBP/USD daily chart, November 27, 2019

The British pound has pulled back a bit during the Tuesday session, showing signs of consolidation yet again, and it’s likely that the same choppy action should continue. That being the case, it’s likely that we will continue to see the buyers come in and at about 1.28, and possibly as low as 1.2750 under there. Ultimately, this is a market that will continue to be very noisy, as we await some type of clarity. That being said, the technical set up is relatively straightforward, so at this point technical analysis will be the only thing that we can look at.

GBP/USD Video 27.11.19

Between the 1.2750 level in the 1.30 level, there has been a lot of noise and choppy behavior. This is essentially forming a “bullish flag” as we had a major run up to that area and then have simply continue to grind back and forth. This should get some type of resolution, perhaps as we get closer to the election or maybe even on election day, telling the market which way it’s ready to go. At a daily break above that 1.30 level, it’s a good sign that the market is going to go looking towards the 1.33 resistance barrier, and then based upon the bullish flag measurement, as high as the 1.38 level after that. Below current support is also the 50 and 200 day EMA indicators, which are now crossing in the so-called “golden cross”, which is a longer-term technically positive signal. All things being equal, I prefer to buy this market on dips.

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