Forecast for GBP/USD on December 23, 2019

GBP/USD

On Friday, the English Parliament voted in favor of a draft agreement between Boris Johnson and the EU. As it turned out, some of the "gains of the opposition" were removed from the final draft, such as the Parliament's right to participate in the formation of a trade agreement with the EU until the end of the transition period in December next year, moreover, the possibility of extending this period to two years, as expected all this time, was excluded.

UK GDP in the final assessment for the third quarter was 0.4% against the forecast of 0.3%. The balance of payments for the same period increased from -24.2 billion to -15.9 billion pounds. As a result, the pound closed Friday with a decrease of ten points amid the strengthening of the dollar index by 0.28%.

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On the daily chart, the price found support in the area where the MACD indicator line coincides with the Fibonacci level of 161.8%. Consolidating the price at this point (1.2967) will open the second goal of going down to 1.2820 - the reaction level of 138.2%. The signal line of the Marlin oscillator has consolidated in the negative trend zone.

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On the H4 chart, a double convergence forms on the Marlin Oscillator - it is possible to consolidate before the level of 1.2967 to build up forces before attacking the support.

The material has been provided by InstaForex Company - www.instaforex.com