FX.co ★ Technical analysis of GBP/USD for December 30, 2020

The GBP/USD pair broke the resistance that turned into strong support at the level of 1.3457 this week.

The level of 1.3457 coincides with a golden ratio (61.8% of Fibonacci), which is expected to act as a major support on the H1 chart today.

Consequently, the first support is set at the level of 1.3457. Moreover, the RSI starts signaling an upward trend, and the trend is still showing strength above the moving average (100).

Hence, the market is indicating a bullish opportunity above the area of 1.3457. So, the market is likely to show signs of a bullish trend around 1.3457 - 1.3500.

In other words, buy orders are recommended above the ratio of 61.8% Fibonacci (0.9966) with the first target at the level of 1.3705 in order to test first resistance in the same time frame.

If the pair succeeds to pass through the level of 1.3705, the market will probably continue towards the next objective at 1.3796.

The daily strong support is seen at 1.3457 - 1.3500. Thus, if a breakout happens at the support level of 1.3457 / 1.3500, then this scenario may be invalidated.