GBP/USD Weekly Price Forecast – British Pound Finally Breaks Out

The 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.
Christopher Lewis
GBP/USD Weekly Price Forecast - British Pound Finally Breaks Out

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

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.