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GBP/USD Weekly Price Forecast – British Pound Continues Flagging Pattern

The British pound went back and forth during the week, initially trying to reach towards the 1.30 level, but pulled back from there to stay within this region. At this point, the market looks as it is simply continuing to form a bullish flag.
Christopher Lewis
GBP/USD weekly chart, November 25, 2019

The British pound initially tried to rally during the week, but found trouble at the 1.30 level, an area that has been important more than once. It now looks as if the bullish flag is fully intact, and it appears that the market is winding itself up for the certainty that the British pound so desperately needs involving Brexit. The election coming in the United Kingdom of course has a major influence on where we go next, but at this point I suspect that as soon as we get some type of certainty, the British pound will take out to the upside. Quite frankly, this is a market that is simply killing time and waiting for the opportunity to take off to the upside. We are historically cheap down here, so it makes sense that we would continue to see a lot of this noise between now and then.

GBP/USD Video 25.11.19

The 50 day EMA underneath suggests that we are finding support underneath there as well, and at this point as long as the market can keep it’s calm, it’s likely that the market will eventually get the breakout that it’s looking for but I think it’s going to take some time. Most importantly, if we do break down I think there is even more support done at the 1.25 level, so at this point it makes a bit of sense that we will continue to see a lot of back and forth trading, but eventually we will get the certainty that the market is looking for, and I think at that point we will probably explode to the upside.

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