The daily chart of the British pound shows that the pair remains within its bullish trend channel. At the level of 1.3696 there is strong resistance that coincides with the top of the uptrend channel. If the GBP/USD pair breaks this level, it may face the strong resistance at 1.3733. It is an area where it would be a good opportunity to sell.
On the other hand, a correction below 1.3623, a level which the GBP/USD pair tried to break several times. There could be a good selling opportunity. Below this level, the correction would accelerate to the SMA 21, which is located around 1.3460.
In addition, we expect the pair to consolidate at the level of 1.3460. At this level we can buy again, because there is the SMA of 21.
Support And Resistance Levels For December 31 – January 1, 2021
Resistance (1) 1.3665
Resistance (2) 1.3712
Resistance (3) 1.3790
Support (1) 1.3525
Support (2) 1.3443
Support (3) 1.3397
Trading tip for GBP/USD on December 31 – January 1, 2021
Sell below 1.3620 (strong resistance) with take profit at 1.3460, stop loss above 1.3655.
Sell if pullback is at 1.3733, with take profit at 1.3620 and 1.3460, and stop loss above 1.3763.
Buy, if there is a rebound around SMA 21 at 1.3460, with take profit at 1.3620 and 1.3670, stop loss below 1.3405.