GBP/USD is trading above the 21 SMA below the 200 EMA. The bullish movement is likely to continue until it finds resistance at the top of the strong resistance at 1.3350.
In the medium term, the prospect for GBP/USD is lateralized with support in the area of 4/8 around 1.3183. If it continues, the next strong resistance is seen at 1.3355 (200 EMA). If this area is broken, the bullish moment could intensify, enabling advance to 1.3427 there is the strong resistance of 6/8 of Murray.
On the other hand, the price could have difficulties when it approaches the area of 1.3350. If it fails to break and consolidate above this level, it will be an opportunity to sell with targets at 1.3300 and 1.3251.
Since November 30, the pound has been trading in a range of 180 pips. It is likely to fall below 1.3250 (21 SMA). It could again weaken to the support of 4/8 Murray at 1.3183.
The eagle indicator is giving a bullish signal but is reaching an overbought level. It is likely that in the next few hours it will show a sign of exhaustion and then the pound would make a technical correction.
Our trading plan is to sell below the 200 EMA and buy if there is a technical bounce around the 21 SMA at 1.3251. It is likely that you may be oscillating between this small range of these two moving averages due to the Christmas and New Year's holidays, a period when trade volume and volatility decrease.
Support and Resistance Levels for December 22 - 23, 2021
Resistance (3) 1.3462
Resistance (2) 1.3427
Resistance (1) 1.3349
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Support (1) 1.3279
Support (2) 1.3238
Support (3) 1.3183
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A trading tip for GBP/USD on December 22 - 23, 2021
Sell in case of a pullback at 1.3350 (200 EMA) with take profit at 1.3305 (5/8) and 1.3251 (21 SMA), stop loss above 1.3385.