GBP/USD Hot Forecast, 31 December 2020

GBP/USD gained strong follow-through on Wednesday.Brexit deal approved by the UK Parliament, GBP/USD stays positive above 1.3600

The GBP/USD pair maintained bullish momentum yesterday, but it seemed some pullback beyond the 1.3600 mark took place during the Asian session. The pair added to the previous day's positive move and continued scaling higher. The momentum was supported by the heavily offered tone surrounding the US dollar, which tumbled to fresh multi-year lows amid the prevalent risk-on environment.

GBP/USD stays on the front foot near the multi-month top, rising for the third consecutive day. On the upside, if the quote manages to cross 1.3600 on a daily closing, it needs to pierce the monthly peak surrounding 1.3625 before eyeing the March 2018 low near 1.3710.

On the flip side, the key 1.3600 psychological mark might now support the immediate downside on the 4-hour chart. Bearish traders might now wait for sustained weakness below 1.3500. Any subsequent fall might now be seen as a buying opportunity. Failure to defend the mentioned support levels might prompt some technical selling and turn the pair vulnerable to slide back below the 1.3440.