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GBP/USD Price forecast for the week of November 20, 2017, Technical Analysis

The British pound has been back and forth and choppy over the last several weeks, and reaching towards the uptrend line. The weekly candle is a bit of a hammer, so I believe that we are trying to build up enough momentum to finally break above the 1.3250 level, and go reaching towards the 1.3650 handle. If we can stay above the 1.30 level, the market is still technically in an uptrend, although it has been a bit of a fight as of late. The 1.365 level above is going to be massive resistance, as that’s the scene from the gap below after the surprise vote to leave the European Union. Once that gets wiped out, that would be an extraordinarily bullish sign, sending this market towards the 1.45 handle above, possibly even the 1.50 level. Choppiness should continue, there are a lot of concerns about what happens in the United Kingdom after they leave the European Union, but at the end of the day the British pound is historically cheap.

Alternately, if we were to break down below the 1.30 level, that would be extraordinarily negative, and send this market looking towards the 1.2750 level underneath, and then possibly the 1.25 level. That’s less likely in my estimation though, so I think that the buyers will continue to try to push higher, as the market will continue to be very choppy and difficult, so longer-term traders will have to be able to ride out the volatility that certainly is coming. However, I think that they will be rewarded, as long as they pay attention to the 1.30 level underneath, as we could be trying to form a floor that could drive this market to the upside.

GBP/USD Video 20.11.17

This article was originally posted on FX Empire

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