The British pound rallied a bit during the trading session on Tuesday, as we continue to see traders get on the right side of the potential election result in the United Kingdom, as the Tories are likely to have control of Parliament. If they do, then it’s likely that we will see the United Kingdom finally leave the European Union, something that seems like it’s been a long time coming. After all, for the last three years there have been a lot of concerns as to whether or not it would actually happen, and now it appears that we are getting closer to that reality. As soon as we get some type of certainty, people can then start to price and the reality of the British economy.
GBP/USD Video 11.12.19
That being said, we have recently broken above the top of a major flag, which measures for a move to the 1.38 level. The 1.33 level above is the initial target, as it is structurally resistive, and I think at this point it’s probably going to be where we see the first real fight. That being said though, it’s likely that we will see buyers try to get involved and tag that level. That being said, I do like the idea of trying to take advantage of what is an obvious break out, and a major short squeeze. Between now and the election it might be a bit of a grind, but as soon as we get there was expected results, it’s very likely that the British pound will continue to go higher.
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This article was originally posted on FX Empire
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