Technical Analysis of GBP/USD for December 31, 2020

Technical Market Outlook:

The GBP/USD pair has finally broken out of the consolidation zone and made a new marginal high located at the level of 1.3648. The local low during the recent the pull-back was made at the level of 1.3428 and will now act as a key short-term technical support. Nevertheless, the bullish pressure is clear, and if the swing high is broken, then the next target is seen at the level of 1.3667 and 1.3708. Please notice, the market is coming off the overbought conditions, so a horizontal range trading might be still in progress. The momentum remains strong and positive, which supports the short term bullish outlook.

Weekly Pivot Points:

WR3 - 1.4170

WR2 - 1.3890

WR1 - 1.3745

Weekly Pivot - 1.3458

WS1 - 1.3319

WS2 - 1.3039

WS3 - 1.2880

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.


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