The British pound went back and forth during the trading session on Friday, showing signs of confusion but quite frankly I think a lot of traders don’t to put money into the market ahead of the weekend as headlines could come out and cause a major On Monday morning in Asia. All things being equal though, it’s very likely that the market will continue to build this flag and that eventually go much higher. All things being equal, the market is currently hovering above the 200 day EMA, which of course is a large indicator for the longer-term trend.
GBP/USD Video 18.11.19
The 50 day EMA is underneath and it looks as if it is trying to break above the 200 day EMA, and therefore it’s a sign that there is even more bullish pressure underneath. The pole of the flag measures for a move to the 1.38 or so, but if we can break above the 1.30 level, it’s likely that the market will then test the 1.33 handle above. At this point, market participants continue to see a lot of noise in the market and of course headline risk. However, it looks as if the fact that Nigel Farage has already stated that the Brexit Party isn’t going to go against the Tories, and that is bullish in the sense that Boris Johnson will probably be able to get his Brexit plan through Parliament. Quite frankly, market participants are more interested in getting certainty than any particular outcome at this point.
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This article was originally posted on FX Empire
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