FX.co ★ Trading plan for GBPUSD for December 09, 2020

Technical outlook:

GBPUSD had managed to print fresh yearly highs at 1.3539 early this week, before reversing sharply lower. This was a significant move since a previous resistance at 1.3515 was taken out, which is constructive for the larger trend which looks to be higher. Having said that, GBPUSD might resume its trend after producing a meaningful corrective drop as highlighted on the daily chart here. The single currency pair has produced a counter trend rally and is seen to be trading around 1.3450/60 zone at this point in writing. Immediate resistance remains intact around 1.3539, while support comes in at 1.3100, followed by 1.2850 levels respectively. The boundary between 1.3539 and 1.3223 has been retraced today and GBPUSD had reached fibonacci 0.786 levels close to 1.3460. A bearish reaction could be expected around current price and the next potential drop could be seen towards 1.3000 and 1.2675 levels respectively.

Trading plan:

Remain short, stop @ 1.3560, target is 1.3000 and 1.2675.

Good luck!