GBPUSD to Rally 2,000 Pips in 2021?

by Justin Bennett  · 

December 17, 2020

by Justin Bennett  · 

December 17, 2020

by Justin Bennett  · 

December 17, 2020

GBPUSD bulls are starting to have their way with the market.

The pair is surging above the 1.3480 key level after closing Wednesday’s session above it.

I’ve discussed the GBPUSD bullish scenario for weeks.

It started on November 20th when I first mentioned the multi-year falling wedge pattern.

Here’s that pattern again in case you missed it:

GBPUSD monthly falling wedge pattern
GBPUSD monthly time frame

Just a few days ago, I said that the charts say bears are wrong.

It was a bold call, but one that’s playing out nicely so far.

Even the price action over the last couple of years looks bullish.

I pointed this out in the December 5th weekly forecast, but it’s worth illustrating again.

GBPUSD weekly inverse head and shoulders
GBPUSD weekly time frame

Notice the 2,000 pip inverse head and shoulders pattern above.

There are multiple left and right shoulders to the structure, but that’s okay as not every head and shoulders pattern is picture-perfect.

If the weekly pattern above plays out according to plan, we could be looking at a measured objective of 1.5500 in 2021.

If you saw my December 3rd GBPUSD commentary, you already know about my 1.4500 target for the pound.

Whether GBPUSD reaches 1.4500 or 1.5500 (or both) next year is anyone’s guess, but a weekly close above 1.3480 would be an excellent start for bulls.

Key resistance comes in the 1.3680 region.

Break that, and there isn’t much to stop GBPUSD from reaching 1.4500.

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GBPUSD bull flag pattern on the 4-hour chart
GBPUSD 4-hour time frame

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  1. Hi Justin,

    I refer to the above analysis about GbpUsd.

    Brexit deal appears to be the major obstacle to the bull.

    Please,provide the reverse scenario should there be No-Deal Brexit.

    Thank you

    1. I only look at the technicals. If the bullish breakout should be invalidated in the coming weeks, then, of course, my outlook will change. But fundamental traders have been telling me for months that GBPUSD is headed lower due to a no-deal Brexit, yet here we are.

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