U.S. Markets closed

GBP/USD Price Forecast – All Await The Elections

Christopher Lewis

The British pound has pulled back a bit during the trading session on Friday, in reaction to a stronger than anticipated jobs figure. That being said though, it is likely that the uptrend will continue as it looks very likely that the conservatives are going to take power again in the United Kingdom. This gives Boris Johnson the ability to leave the European Union, which is the type of stability the traders have needed to see. With that in mind, you should also pay attention to the fact that the pullback was very slight, considering just how much of a blowout the jobs figure was in the United States.

GBP/USD Video 09.12.19

To the downside, the 1.30 level underneath will be targeted as potential support, as it was previous resistance. The top of the bullish flag is found there, and therefore there should be a lot of interest. I think at this point a pull back to that area should show plenty of interest, and I would look at that as a buying opportunity. Having said that though, it does look like we are in a hurry to get down there. The British pound remains bullish and therefore looks likely to continue grinding its way higher over the next several weeks. The 1.33 level will be the next target, and then the 1.35 level followed by the 1.38 level as based upon the measurement of the bullish flag that had been broken out of recently. Shorting this pair is a great way to lose money.

Please let us know what you think in the comments below

This article was originally posted on FX Empire