Technical Analysis of GBP/USD for December 18, 2020

Technical Market Outlook:

The GBP/USD pair has made another swing high located at the level of 1.3620, but the rally was capped after the Bearish Engulfing pattern was made at the H4 time frame chart. The bulls are still in control of the market, the momentum is still strong and positive, but the market conditions are overbought, so it might be a time for a pull-back. The nearest technical support is seen at the level of 1.3538 and 1.3515. Please notice, the up trend at the daily time frame chart is still in progress and there is no indication of a trend change yet.

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 might have started a long term up trend and the trigger for this trend was the breakout above the level or 1.3518 on the weekly time frame chart. All the local corrections should be used to enter a buy orders as long as the level of 1.2674 is not broken. The long-term target for bulls is seen at the level of 1.4370.

analytics5fdc5aafd582d.jpg

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