Trading Signal for GBP/USD for December 18 - 21, 2020: Bearish Signal

The GBP/USD pair, at the opening of the Asian session, is trading at 1.3581 below the 21 SMA under downward pressure. The pair is supported by the eagle indicator, which shows a bearish signal for the next few hours.

In the 1-hour chart, which you can see in the image below, we notice that GBP/USD has failed to break its high of 1.3622 leaving a double-top pattern. The eagle indicator at that time gave the bearish signal and remains pointing bearish.

Since it is now below the SMA, we expect it to remain under this downward pressure for the next few hours and into next week. You can observe a bullish trend line, if this channel is broken, we could expect a drop to the 200 EMA, at 1.3389.

If GBP/USD remains below the SMA, our recommendation is to sell at the current price levels with targets at 1.3427 (6/8 murray) and up to the 200 EMA.

The market sentiment for today December 18 shows that there are 65% of operators that are selling this pair, however, this retracement of the GBP / USD could be considered a correction for a new bullish momentum.

Review our analysis of December 16 on GBP/USD.

Review our analysis o December 17 on GBP/USD.

Trading tip for GBP/USD for December 19 – 21

Sell below 1.3583 (SMA 21) and 1.3550, with take profit at 1.3510 and 1.3427 (6/8) , stop loss above 1.3625.

Sell if the pair trading below 1.3510, with take profit at 1.3427 (6/8) and 1.3380 (EMA 200) , stop loss above 1.3560.

Buy if rebound at 1.3380, with take profit 1.3427 and 1.3540, stop loss below 1.3345.

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