GBP/USD Price Forecast – British Pound Testing Major Resistance

The British pound rallied significantly during the trading session on Tuesday, reaching towards the psychologically and structurally important 1.30 level above. At this point, the market is likely to continue to go higher, and at this point ultimately what we are seeing is the British pound trying to build up the necessary momentum.
Christopher Lewis
GBP/USD daily chart, December 04, 2019

The British pound has rallied rather significantly during the trading session on Tuesday, as we continue to press against the vital 1.30 level. That’s an area that is a massive barrier that traders will be trying to get above, and if we can clear it significantly, it’s very likely that this pair will go to the 1.33 level above, possibly even the 1.38 level. This would kick off a major breakout based upon the flag, and as a result it looks very likely that we are going to continue to go higher given enough time, but there is a lot of work to do to finally break out. Short-term pullbacks at this point in time continue to attract value hunters, and it looks very likely that the British pound is on the verge of breaking out for a longer-term move.

GBP/USD Video 04.12.19

To the downside, the more .28 level looks to be massive support, and quite frankly I have no interest in shorting this market anytime soon. The UK election looks more likely to bring in a conservative Parliament, and that should facilitate a big move in Brexit. Quite frankly, this market probably doesn’t care about the British economy other than they need some type of certainty when it comes to the UK leaving the European Union, so at this point this is a market that will continue to be very jittery, but it certainly looks as if the buyers are starting to assert control here.

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