The British pound has broken higher during the trading session on Wednesday, clearing the 1.30 level. That’s an area that is significant as it is the top of the overall consolidation flag, and now the next move could be in the cards. The 1.33 level above is a bit of a resistive area, and I think that will be the next target. That being said, it’s likely that the market will continue to go much higher, reaching towards the 1.38 level above as the measured move from the bullish flag would indicate. If you are not in this trade already, then you may wish to see a bit of a pullback in order to find some type of value that you can take advantage of. Because of this, it’s likely that plenty of value hunters will be waiting.
GBP/USD Video 05.12.19
To the downside, the 1.30 level should now be massive support, and beyond that I believe that the market will continue to see plenty of short covering. Because of this, there will be plenty of momentum eventually to turn things back around and I do think that this is a market that will continue to look very bullish as we head towards the election. I have no interest in shorting this market, and the previous bullish flag should now offer a massive amount of support underneath the crucial 1.30 level. With this being the case, the market is very likely to continue over the longer term to the upside as stability is the one thing that Britain needs.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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