FX.co ★ Technical Analysis of GBP/USD for December 12, 2022

Technical Market Outlook:

The GBP/USD pair has been seen trading close to the weekly high seen at the level of 1.2343 and still above the trend line support. The nearest technical support is still seen at 1.2106, so in a case of an unexpected breakout lower, the next target for bears is seen at 1.1897 (30th November low). Also, please notice the Bearish Divergence between the price and the momentum indicator that might have an impact on the next bearish movement. The momentum is neutral, so any breakout lower and down move extension is possible.

Weekly Pivot Points:

WR3 - 1.22823

WR2 - 1.22537

WR1 - 1.22388

Weekly Pivot - 1.22251

WS1 - 1.22102

WS2 - 1.21965

WS3 - 1.21679

Trading Outlook:

The bulls are temporary in control of the market and the 50% Fibonacci retracement of the last big wave down located at 1.2293 had been tested, so a down trend resumption is possible. On the other hand, the level of 1.0351 has not been tested since 1985, so the down trend is strong. In order to terminate the down trend, bulls need to close the weekly candle above the level of 1.2275 (swing high from August 10th).