Forecast for GBP/USD on December 1, 2020

GBP/USD

Yesterday, the pound traded in Friday's range, moving below the technical level of 1.3390 for six trading days. The divergence with the Marlin oscillator is getting stronger, and there might be no more attempts to test 1.3390.

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The main obstacle for the pound is Britain's exit from the EU without a deal. But even if the deal takes place at the last moment, investors will not be optimistic, since in fact the economic situation in Great Britain will be worse than before leaving the bloc. And the pound's growth since October included a positive scenario for reaching a trade deal; during this time the euro has grown by 2.94%, and the pound sterling by 5.35%.

On the technical side, the price has gone under the MACD line in the area of 1.3202, opening the way to 1.3050, 1.2930, etc.

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The downward mood persists on the four-hour chart: the price is below the MACD line, Marlin is in the negative zone. We are waiting for the development of events. If the price moves below the signal level of 1.3288, it will start to run towards the lower target levels of the higher timeframe. We are keeping an eye on the first major obstacle of 1.3202.

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