GBPUSD Multi-Year Breakout Could Reach 1.45

by Justin Bennett  · 

December 3, 2020

by Justin Bennett  · 

December 3, 2020

by Justin Bennett  · 

December 3, 2020

I’ve liked GBPUSD higher for the last few weeks.

The development of a massive twenty-year falling wedge hinted at an imminent break higher.

I wrote about that pattern on November 20th.

Here it is on the monthly time frame:

GBPUSD monthly falling wedge pattern
GBPUSD monthly time frame

As I write this post, the pound is breaking above that resistance area near 1.3320.

In fact, it closed above 1.3320 last week.

However, I had some doubt as to whether the area would hold as new support.

Those of you who watched Saturday’s forecast video know what I’m referring to.

But so far, GBPUSD buyers are doing their part.

Not only is the pair holding above 1.3320, but it’s also testing the next key resistance at 1.3480.

This was the next resistance area based on the price action between December 2019 and September of this year.

GBPUSD needs to secure a daily close above 1.3480 to see higher levels such as 1.3650 and 1.3700.

And make no mistake about it, the pound has been above 1.3480 since the first half of 2018.

That means a breakout over the next few weeks could trigger a massive influx of buyers.

For that reason, I’m not ruling out a run to 1.4500 in 2021.

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GBPUSD key breakout on the daily chart
GBPUSD daily time frame

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  1. Living here in London, and hearing the daily news, what you are indicating is all dependent on the result of the current Brexit talks, if it goes well the pound will shoot up as you predict, but if there is no deal, it will drop. No matter what the chart says, the movement will depend on the results of the current talks. Next week is the deadline.

    1. You don’t have to live in London to hear about Brexit, my friend. Those talks have been ongoing for years, yet here we are.

      Assuming a currency will move a certain way based on a preconceived notion of positive and negative outcomes is a dead end. The market is the only one that determines what is constructive or destructive for a currency, which is why I focus on the charts.

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