The British pound has rallied a bit during the trading session on Monday, reaching higher yet again. At this point, the market is likely to test the 1.30 level above, which of course has been major resistance. At this point in time it’s likely that we will test that area again, and if we can break above it, the British pound should continue to go much higher and break out too much higher levels. Overall, the GBP/USD pair has been forming a bullish flag for some time, and it should be noted that based upon measurements of the flag, we could be going as high as 1.38 eventually.
GBP/USD Video 03.12.19
Obviously, one of the biggest drivers of the British pound as of late has been Brexit, and of course the UK elections that are coming. It looks as if the conservatives are going to continue to lead the pack, but now there are concerns about whether or not they have a full and clear majority in Parliament. Ultimately, the market looks very likely to continue been very noisy, but it most certainly has an upward proclivity. We have the “golden cross” that has happened recently, and a massive amount of support near the 1.28 handle. That being said I am bullish, but I recognize that the occasional dip is the buying opportunity that you are looking for, not necessarily jumping in right away. If we do break above the 1.30 level, I believe that the next target will probably be closer to the 1.33 handle, which has a lot of structural resistance building.
This article was originally posted on FX Empire
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