GBP/USD Price Forecast – Pound Continues to Wait for Announcement

The British pound has rallied a bit during the early trading on Wednesday, as we continue to see hope of some type of deal. After all, regardless of what they say, they continue to get back together in order to negotiate. That suggests that we are clearly going to see an attempt to get across the finish line, and I think given enough time we will do that. Having said that, I believe that it is only a matter of time before something happens to make a decisive move, but if you are simply watching the price action, you can see that the market truly believes that we are in fact going to go higher given enough time.

GBP/USD Video 24.12.20

To the downside, the 50 day EMA sits at roughly 1.3250, an area that is the middle of a larger consolidation area between the 1.30 level and the 1.35 handle. With that being said, I believe that this market is suggesting that we are going to go higher, perhaps expecting that we are going to see a resolution sooner rather than later. In fact, as I record this, we are already starting to see the EU clear parliamentary procedure so that they can vote on a potential trade deal between the EU and the UK starting January 1. This tells me yet another hurdle has been cleared.

That being said, the occasional disappointment could come into play and push this market lower, so that something that you should be paying attention to. However, this is a market that continues to be a “buy on the dips” type of market. Ultimately, I do think that we smash through the ceiling, but we need negotiators to make that breakthrough.

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