FX.co ★ Trading Signal for GBP/USD for December 16 - 17, 2020: Strong Resistance 1.3545

The GBP/USD pair this morning of the American session has reached levels of 1.3543, an area of strong resistance in daily charts. The price also coincides with the 7/8 of Murray. This spike comes from progress about a positive Brexit deal. Any news on the market will give the British pound further bullish momentum.

Before the end of the agreement between the European Union and the United Kingdom, analysts will continue to maintain their expectations of a Brexit deal and also for the possibility of an agreement in the US Congress on more fiscal stimulus.

At the technical level, we note that the pound has formed a double top in the 1.3540 zone, the eagle indicator shows that it is reaching an overbought zone, so the odds are that there will be an impulse to the top of the bullish channel in the 4-hour chart. The price might touch resistance of 1.3617. Alternatively, at this level we could expect a downward correction.

Today in about 5 hours, (14:00 GTM-5) a series of economic data will be released in the United States, which if positive could strengthen the US dollar. If the British pound does not have solid grounds to maintain its bullish strength, we could see a decline in the pair to the 1.3470 zone.

Our recommendation is to sell below 1.3543, the 7/8 murray area. We can expect a reversal at this level since the last time it touched this level it could not consolidate above this area.

The market sentiment for this morning of December 16 shows an increase in the operators who are selling this pair, the figure has increased by 8% more compared to the previous week, now it is with 66% that maintain positions in sell, which is a signal that any pullback in GBP/USD we can look for opportunities to buy.

Trading tip for GBP/USD for December 16 – 17

Buy above 1.3550 (Strong reistance), with take profit at 1.361 and 1.3670 (8/8) , stop loss below 1.3510.

Sell if the pair trading below 1.3540, with take profit at 1.3470 and 1.3365 (SMA 21) , stop loss above 1.3580.

Buy if rebound at 1.3365, with take profit 1.3460 and 1.3540, stop loss below 1.3315.