GBP/USD Weekly Price Forecast – British Pound Finally Breaks OutThe British pound broke out during the week, breaking above the crucial 1.30 level kicking off a bullish flag. This of course has been helped by a little bit more certainty with the UK elections.
The British pound has rallied significantly during the week, breaking above the 1.30 level. This level is not only psychologically important due to the fact that it is a large, round, big figure, but it’s also the top of the bullish flag that we had seen recently. By breaking above here, it makes quite a bit of sense that the market goes higher. This is a major barrier that finally got taken out, and that of course will have a lot of traders excited. Ultimately, this is a pair that I believe goes to the 1.33 level, and then eventually the 1.40 level given enough time. The measurement of the bullish flag suggests that a move to the 1.38 level is certainly possible.
GBP/USD Video 09.12.19
Keep in mind that we have an election next week, and that of course will come into play and have a lot to do with what happens with the British pound next. That being said though, if we can get a Tory Parliament, it’s likely that the British will be leaving the European Union and we will finally get some type of certainty in this marketplace. All things being equal, certainty is the one thing that the British pound needs to go going forward, and with that being the case it’s certainly worth noting that traders will continue to look at this is a “buy on the dips” type of situation. Overall, I think that unless we were to turn around a break down below the 1.2750 level, there’s no reason whatsoever to think about shorting.
Please let us know what you think in the comments below