This week, the GBP/USD pair is oscillating within an intraday range below 1.34 and above 1.3291. The trajectory of the British currency depends on the Brexit news. Any new reports about a deal will continue to push the GBP/USD into the resistance zone of 1.3396.
The EU chief negotiator, Michel Barnier, told European ministers that the chances of an agreement are "very slim". Furthermore, German Minister Michael Roth said there was no substantial progress in the trade talks between the EU and the UK, adding that "it remains totally uncertain whether Britain and the EU can reach a trade deal."
During the last month from November until now, we have seen more than 10 bounces in the 1.3296 area. This area has been a good daily support allowing the pair to stabilize with a medium-term uptrend. Similarly, the 1.3396 area is a resistance that the GBP/USD pair has tried to break several times. It failed and corrected below this level.
So, the 1.3396 area will be a good point for the GBP/USD pair if it exceeds this level we would expect a bullish movement to the resistance area of 1.35, 1.3570 and 1.3680. Well, the trigger for the pound sterling to reach those levels could be the long-awaited Brexit agreement, which has a deadline of December 31.
Therefore, our recommendation is to sell below 1.3390, only if the pair does not break the 1.3396 resistance, aiming at the intraday range of 1.3290, if the downward pressure accelerates, we would expect a drop to the trend channel support. daily of 1.3255. A bounce at this level can be bought with targets up to 1.34. A sharp break below the trend channel, we could expect a decline to the 1.3060 area of the weekly trend channel.
Conversely, a break of the resistance at 1.3396 and a daily close above that zone could give bullish momentum to the 1.35 zone psychological level, 1.3549 (7/8 of murray) and the resistance zone of 1.3672 (8/8), key levels that we expect in the medium term.
Trading tip for GBP/USD for December 09 – 11
Buy above 1.3396 (Strong resistance), with take profit at 1.3549 and 1.3672 , stop loss below 1.3360.
Buy if the pair rebound around 1.3265 (trend line), with take profit at 1.3305 and 1.3370, stop loss below 1.3215.
Sell below 1.3390 with take profit at 1.3290 and 1.3255, and stop loss above 1.3440.
Sell if the pair breakout to 1.3255, with take profit 1.3188 and 1.3060, Stop loss above 1.3305.
The material has been provided by InstaForex Company - www.instaforex.com