FX.co ★ Technical Analysis of GBP/USD for December 28, 2022

Technical Market Outlook:

The GBP/USD pair has made Double Top price pattern at the level of 1.2444, retraced just little over 50% of the last wave down and then reversed below the level of 1.2106. The bears made a new local low at the level of 1.1991, so the down move is still intact.The bears are approaching the intraday support to test it again, so in a case of a breakout, the next target for bears is seen at the level of 1.1899. The intraday technical resistance is seen at the level of 1.2106, but the momentum is still below the level of fifty as the volatility decreased significantly.

Weekly Pivot Points:

WR3 - 1.21883

WR2 - 1.21344

WR1 - 1.21129

Weekly Pivot - 1.20805

WS1 - 1.20590

WS2 - 1.20266

WS3 - 1.19727

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 broken, so the next target is 61% Fibonacci retracement level (1.2760). 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).