Technical Analysis of GBP/USD for December 23, 2020

Technical Market Outlook:

The GBP/USD pair has retraced more than 61% of the last wave down, but reversed anyway as the bearish pressure is clear. Currently the market is trading in a narrow range located between the levels of 1.3306 - 1.3442 as the momentum indicator turns flat at the level of fifty (neutral momentum level). The next technical support is located at the level of 1.3264 and 1.3240. Please notice, that if the level of 1.3240 is violated, the price will be close to the main trend line support located around the level of 1.3175. The key technical support is still seen between the levels of 1.3165 - 1.3121.

Weekly Pivot Points:

WR3 - 1.3982

WR2 - 1.3787

WR1 - 1.3662

Weekly Pivot - 1.3457

WS1 - 1.3286

WS2 - 1.3107

WS3 - 1.2936

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.