The British pound has been going back and forth during the trading session on Thursday against the US dollar again, as we simply have no catalyst to go anywhere this point. That being said, we are forming a bullish flag and I do think that it’s only a matter of time before the British pound takes off to the upside. The Brexit situation is starting to clear itself up just a little bit, so that of course helps the situation with the British pound as well. Quite frankly, I suspect that the market doesn’t really care what happens with the Brexit at this point, but rather something dollars.
GBP/USD Video 15.11.19
A break above the 1.30 level is a very bullish sign and could send this market much higher, with the initial target being the 1.33 handle. After that, I think that the market then goes looking towards the 1.38 level based upon the bullish flag that is starting to form. Ultimately, I think that the market will eventually get there, but it may be very choppy and noisy along the way. Pullbacks should continue to find plenty of support based upon the 200 day EMA and of course the 50 day EMA which is starting to race towards that indicator as well. All things being equal, this is a market that is ready to take off as soon as it’s given a reason to. In fact, when you look at the longer-term historical charts for the British pound, you see that we could go much, much higher over the next couple of years.
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This article was originally posted on FX Empire
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