Technical Analysis of GBP/USD for December 10, 2020

Technical Market Outlook:

The GBP/USD pair has bounced high above all of the Fibonacci retracement levels and made a local high at the level of 1.3476. The bounce has ended with a Bearish Engulfing candlestick pattern at its top, so the bears are now pushing the price lower again. Nevertheless, this situation is only temporary and there is no indication of the up trend termination yet. The nearest technical support is located at 1.3306 and 1.3295. The strong and positive momentum supports the short-term bullish outlook, so only if the demand zone located between the levels of 1.3264 - 1.3240 is clearly violated, then the outlook will change to bearish.

Weekly Pivot Points:

WR3 - 1.3800

WR2 - 1.3667

WR1 - 1.3552

Weekly Pivot - 1.3410

WS1 - 1.3307

WS2 - 1.3172

WS3 - 1.3057

Trading Recommendations:

The GBP/USD pair is in the down trend on the monthly time frame, but the recent bounce from the low at 1.1411 made in the middle of March 2020 looks very strong and might be a reversal swing. In order to confirm the trend change, the bulls have to break through the technical resistance seen at the level of 1.3518. All the local corrections should be used to enter a buy orders as long as the level of 1.2674 is not broken.

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