Forecast for GBP/USD on December 9, 2020

GBP/USD

Yesterday, the British pound attacked the target level of 1.3290 for the second time, but could not overcome it on the formal concession of London in its negotiations with the EU - we received information about the UK's consent to remove three clauses that violate international law on the internal market (Articles 44, 45 , 47). Now the pound is trading within the range of 1.3290-1.3395.

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Going beyond the range and being able to settle in the boundaries of any of the given ranges will determine the succeeding price movement. The main scenario (of course, according to our concept) is to go down, the target is 1.3180. Further towards 1.3108, 1.3005. The nearest upper target is 1.3495, and it is also possible for it to reach 1.3680. We do not expect a significant increase in the pound even if the UK and the EU manage to reach a deal, since to a large extent the market has already absorbed the positive outcome of events and in fact it may fall.

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The four-hour chart shows that the price is staying below the red balance indicator line, and the Marlin oscillator is also developing in a downward trend. We are waiting for the development of events. Getting the price to settle below 1.3290 will be a sign of the market's readiness to fall to 1.3180 and below.

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