FX.co ★ Technical Analysis of GBP/USD for December 14, 2021

The GBP/USD pair set above strong support at the level of 1.3157, which coincides with the double bottom. This support has been rejected for four times confirming uptrend veracity. Hence, major support is seen at the level of 1.3157 because the trend is still showing strength above it. Accordingly, the pair is still in the uptrend from the area of 1.3157 and 1.3200. The GBP/USD pair is trading in a bullish trend from the last support line of 1.3157 towards the first resistance level at 1.3327 in order to test it. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 1.3327 and further to the level of 1.3379. The level of 1.3431 will act as second resistance and the double top is already set at the point of 1.3431. At the same time, if a breakout happens at the support levels of 1.3157 and 1.3090, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.

Forecast :

According to the previous events the price is expected to remain between 1.3157 and 1.3441 levels. Buy deals are recommended above 1.3157 with the first target seen at 1.3327. The movement is likely to resume to the point 1.3379 and further to the point 1.3441. However, it would also be sage to consider where to place a stop loss; this should be set below the second support of 1.3090.