The British pound has initially pulled back to the 1.28 region on Tuesday, but then bounced enough to show signs of life again. The 200 day EMA sits just below, and that of course will cause a certain amount of support as well. The 50 day EMA is reaching towards the 200 day EMA and getting ready to cross. That is known as the “golden cross”, and as a result will have a lot of longer-term traders looking at the market as one that should continue to go much higher. Ultimately, this is a market that does look as if it’s ready to go higher, but obviously there’s going to be a lot of noise due to the Brexit situation.
GBP/USD Video 13.11.19
This is a market that has shot higher recently, and if we get any type of good news involving Brexit, that will shoot this market to the upside, reaching towards the 1.30 level, and then possibly a move higher than that. That would kick off a bullish flag, which measures for a target of 1.38 to the upside. However, the 1.33 level above will be somewhat resistive based upon the structure that I see on the chart, so don’t necessarily think we will get to that 1.38 level right away. This is a market that is going to continue to attract a lot of value hunters, buying on the dips as they appear. At this point, the market is going to be very choppy, but certainly seems to have more of an upward feel, and at this point though the market is bullish, it will continue to be very noisy until we get some clarity.
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This article was originally posted on FX Empire
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