The British pound had a positive week as we continue to build the case for a bullish flag, and now look likely to continue to go to the upside. If we can break above the crucial 1.30 level, it’s likely that the British pound will take off towards the 1.33 handle, and then possibly even the 1.38 level based upon the measurement of the bullish flag that we are currently trading in.
GBP/USD Video 02.12.19
Another thing that’s worth paying attention to is that we are gradually sloping to the upside and forming what could be a bit of a perfect pattern. That being said, I have no interest in shorting the British pound and I do believe that at these historically cheap levels, the British pound should continue to find buyers. Overall, if the market was to take off to the upside, it’s very likely that the market will see a surge of money flowing into the market and pushing it to the upside.
To the downside, the 1.2750 level is likely to hold as support, and therefore pullbacks will continue to attract short-term buyers. Even if we break down below the bottom of the flag, it’s very likely that the British pound will simply “reset” closer to the 1.25 level underneath. It’s not until we break down below there that I would be concerned about the British pound, because it is still moving on the headlines and seems to be moving to the upside overall. Once we get the election behind us, then we can start to focus on a bigger move.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- USD/JPY Weekly Price Forecast – US Dollar Continues Higher Against Japanese Yen
- AUD/USD Forex Technical Analysis – Trading on Weak Side of Retracement Zone at .6770 to .6801
- Crude Oil Weekly Price Forecast – Crude Oil Markets Get Hammered
- Gold Weekly Price Forecast – Gold Markets Continue To Find Support At Major Level
- Silver Price Forecast – Silver Markets Form Hammer
- USD/JPY Forex Technical Analysis – Price Action Suggests Short Top is Forming