Technical Analysis of GBP/USD for December 16, 2020

Technical Market Outlook:

The GBP/USD pair has broken above the short-term trend line resistance seen around the level of 1.3400 and made a local high at the level of 1.3469. The next target for bulls is seen at the level of 1.3476, 1.3515 and at the swing high at 1.3538. For now the local technical support is located at the level of 1.3306. The momentum is now strong and positive and the market conditions are not overbought yet. Please notice, the up trend at the daily time frame chart is still in progress.

Weekly Pivot Points:

WR3 - 1.3813

WR2 - 1.3637

WR1 - 1.3455

Weekly Pivot - 1.3298

WS1 - 1.3125

WS2 - 1.2955

WS3 - 1.2786

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