The British pound has gone back and forth during the trading session on Thursday, showing a lack of momentum to finally break out. That’s not a huge surprise, because we need to get a little bit more in the way of certainty to see this market finally break above the top of what looks to be a bullish flag. This is probably the most obvious pattern in the world right now, so it should have a bit of a “self-fulfilling prophecy” aspect to it. If the market can finally break above the 1.30 level, then it opens up the door to reaching towards the 1.33 level, and then possibly even the 1.38 level after that. Ultimately, this is a market that is going to continue to see a lot of noise but eventually should fulfill this move.
GBP/USD Video 29.11.19
The 50 day EMA is crossing above the 200 day EMA and going higher. This is the so-called “golden cross”, which attracts a lot of longer-term “buy-and-hold” type of traders. With that being the case, the market looks very likely to continue going higher for a whole host of reasons, and as soon as we get the UK elections out of the way, this market is primed to go much higher. Recent opinion polls suggest that the Tory government is going to get a conservative Parliament, so that leads the idea going forward that perhaps we will actually get Brexit out of the way someday in our lives. Until then though, the market is simply killing time between 1.30 on the top and 1.2750 on the bottom.
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This article was originally posted on FX Empire
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