The British pound broken out a bit during the week, reaching towards the 1.28 level by the time we closed out on Friday. At this point, the market has been going back and forth trying to break out above the 1.30 level above. If we can clear that level, then it’s likely that the market probably goes to the 1.33 handle above, and then possibly the 1.40 level after that longer term. Overall, this is a market that will continue to see a lot of choppy and noisy trading, as Brexit is all over the headlines and of course will continue to push this market back and forth.
GBP/USD Video 11.11.19
Looking at this chart, it is forming a bit of a bullish flag, as the market continues to see a lot of underlying pressure. If the market can break above there, it’s likely that the British pound should move much quicker to the upside. However, if we were to break down below the 1.2750 level, then the market is likely to drift down to the 1.25 level where it will probably find buyers there as well based upon the daily chart and structure there. That being said, unfortunately the Brexit situation continues to be a major issue, as there are plenty of conflicting headlines, and therefore you can expect a lot of volatility. At this point, building a core position is fine but jumping “all in” right away is a recipe for disaster.
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This article was originally posted on FX Empire
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