Forecast for GBP/USD on December 2, 2020

GBP/USD

The pound sterling gained 96 points on Tuesday only on the fact that Brexit talks, albeit at a deadlock, continue. Tomorrow is the last day of negotiations.

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The daily chart shows that the reversal divergence became double, which strengthens the technical sign of a price reversal. If the price rises to the upper border of the 1.3480 target range, the divergence may take a slightly different form, but it will remain at its core. We also do not expect any breakthrough in the talks and believe that negotiators are only finalizing their game. After the price settles below the 1.3390 level, the price is likely to fall to the MACD line to the 1.3202 area.

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The four-hour chart shows that the trend is fully upward: the price is above both indicator lines, while the Marlin oscillator is in the growth zone. The 1.3390 price level coincides on this scale with the MACD line, which increases the significance of the level, breaking it will become an important signal for a decline. The intermediate target is the November 27 low, overcoming it will be the first signal for the midterm fall of the British pound. Approval of this scenario will occur when the price overcomes the MACD line on the daily in the area of 1.3202.

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