Forecast for GBP/USD on December 21, 2020

GBP/USD

The British pound has received a double blow today: the failure of Brexit negotiations over the weekend and the closure of borders due to the outbreak of a new type of coronavirus in the south-east of England. In the morning alone, the pound lost 160 points.

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The daily chart shows that the signal line of the Marlin oscillator has penetrated into the area of negative values, now the price will have a prolonged fall. Earlier we also said that the pound will still fall even if an agreement between the UK and the EU is concluded, as they say, "in fact", due to it being overbought on expectations and understanding of the fact that the deal will only soften the economic blow to England, but will not cancel it.

The first target and support for GBP/USD is the MACD line on the daily chart - 1.3246. Going under the line opens the second target of 1.3108, then 1.3005.

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The four-hour chart shows that the price has settled below the MACD line, the Marin oscillator sharply falls. A correction will likely follow from the 1.3246 level, in which Marlin will leave the oversold zone and be discharged to fall further.

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