GBP/USD Price Forecast – British Pound Shows Indecision

The British pound has gone back and forth during the trading session on Thursday, showing that the top of the flag still offers a bit of support. We are still very much in an uptrend and it looks like the 50 day EMA is going to try to cross above that 1.30 level. Once it does, that will provide a little bit a dynamic support but at this point in the year it’s very difficult to get the markets excited about much. What’s particularly telling is that all it took was Boris Johnson suggesting that he wasn’t going to ask for an extension to the Brexit to send the British pound down five handles. In other words, although this is a very bullish chart, it looks as if the British pound is going to continue to be very volatile.

GBP/USD Video 20.12.19

Now that we have pulled back the way we have, I’m going to wait to see whether or not we can get a couple of days’ worth of stability before buying again. That being said, this time a year is typically very quiet, so don’t be surprised at all to see this market just grind sideways for a while and try to figure out what to do next. Ultimately, this is a market that looks very likely to find a bit of support underneath but that doesn’t necessarily mean that there will be a huge rush into the market either, especially considering that next week is Christmas.

Please let us know what you think in the comments below