The British pound has initially pulled back during the trading week, but then found enough support below the 1.30 level to form a bullish looking hammer. That being said, we are heading into the end of the year so to be difficult to imagine whether or not there will be enough volume to move this market drastically. That being said, if we can break above the weekly candlestick, it’s likely that we will continue to go looking towards the 1.35 handle. This is a market that you should probably slowly build up in though, as there are going to be a lot of issues to say the least. The British pound has continued to look very strong recently, and quite frankly it probably needed this pullback in order to offer an of value to get people interested again.
GBP/USD Video 30.12.19
If we can break above the 1.35 handle, then the market is likely to go looking towards the 1.38 level based upon the bullish flag, and then of course the 1.40 level after that. All things being equal though, the British pound looks as if it has bottomed and I think it’s only a matter of time before we continue to see buyers jumping in and taken advantage of the British pound being cheap from historical standpoint. Overall, this is a market that will probably continue to see plenty of value in the pound, but this next week is going to be disrupted by New Year’s Day, so January 6 is probably when we get the real move.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Weekly Price Forecast -Gold Explodes To The Upside
- Crude Oil Price Forecast – Crude Oil Markets Stall At Highs
- Natural Gas Price Forecast – Natural Gas Markets Continue To Find Support At Same Level
- AUD/USD Weekly Price Forecast – Australian Dollar Breaks Out
- USD/JPY Price Forecast – US Dollar Still Testing Resistance
- Gold Price Forecast – Gold Markets Test Resistance Again