In the early American session, the GBP/USD pair is trading at 1.3593, very close to the strong resistance of 1.3620. The pair is showing bullish strength, consolidating above the 21-day SMA.
We expect the pair to break through the 1.3620 level and quickly trade in the 1.3671 and 1.3790 areas. These are the last levels of resistance that the pair has left.
On the other hand, if GBP/USD makes a technical correction below the 21 SMA around 1.3535 and consolidates below this level, we could expect a bearish move to the 200 EMA at 1.3370.
On the 4-hour chart, we can see the formation of a symmetrical triangle. We hope that GBP/USD will make a breakout to confirm the next move. If it fails to overcome 1.3620, we would expect a correction to 1.33 in the short term.
Support And Resistance Levels For December 30-31
Resistance (1) 1.3611
Resistance (2) 1.3712
Resistance (3) 1.3733
Support (1) 1.3566
Support (2) 1.3531
Support (3) 1.3487
Trading tip for GBP/USD for December 30 – 31
Buy above at 1.3620 (Strong resistance), with take profit 1.3670 (8/8) and 1.3790, stop loss below 1.3580.
Buy if the pair rebounds around SMA 21 at 1.3535, with take profit 1.3620 and 1.3670, stop loss below 1.3300.
Sell if the pair breaks below SMA 21 at 1.3520, with take profit 1.3427 and 1.3370, stop loss above 1.3555.