The British pound has done very little during the trading session on Friday, as the market is sitting on the 1.28 handle, and at this point in time it’s likely that we will see a zone of support underneath. The 200 day EMA underneath will continue to offer quite a bit of support, and as a result it’s likely that the market will continue to go higher. At this point, the 1.30 level above will continue to cause a bit of resistance. If you can break above the 1.30 level, then the market is going to continue to go much higher, perhaps reaching towards the 1.33 handle. However, based upon the massive flag that has formed it’s likely that we go even higher, perhaps as high as 1.38. That doesn’t of course mean that it has to happen overnight.
GBP/USD Video 11.11.19
Short-term pullbacks at this point continue to offer support, and we are at one of those levels. Even if we were to break down from here the 200 day EMA which is currently at the 1.27 region should offer support and then of course the 1.25 level based upon structural integrity of the previous move higher. Either way, it’s only a matter of time before the British pound goes higher, based upon the Brexit headlines at least stabilizing a bit. Overall, this is a market that will be driven by noise, but eventually we will get clarity, and at this point it would be a market that is historically cheap anyway.
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This article was originally posted on FX Empire
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