GBP/USD Price Forecast – British Pound Rallies Again

The British pound has rallied again during the trading session on Monday, as Nigel Farage has suggested that a hung parliament was possible. This has traders getting excited about the possibility of the Brexit deal Dragon on forever, perhaps keep in the UK in the EU longer. At this point though, I think that is probably a nonstarter, as the noise continues.
Christopher Lewis
GBP/USD daily chart, November 12, 2019

The British pound has rallied significantly during the trading session on Monday, as the Brexit Party leader Nigel Farage has suggested that a hung parliament is very possible. At this point, people start buying the British pound under the hopes that perhaps the British shortly the European Union, or at least it will drag out the situation even further. At this point in time it looks as if the 1.30 level will continue to be a major barrier that will take a lot to get through. At this point, it’s very unlikely to break through there without some type of big news, so in the short term it looks like dips will continue to be bought.

GBP/USD Video 12.11.19

To the downside, the 200 day EMA should offer plenty of support, right around the 1.20 level. At this point, the market continues to see a lot of noise between the two areas, but one thing that could be said is that it looks like we are trying to form some type of bullish flag, and that of course is something that the entire market sees. If the market was the break above the 1.30 level, then it could reach towards the 1.33 handle, which is the significant resistance that we have seen in the past. At this point in time, the market could go as high as the 1.38 level, based upon the pole of the bullish flag that we have been forming.

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
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.
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.