FX.co ★ Technical Analysis of GBP/USD for December 4, 2023

Technical Market Outlook:

The GBP/USD pair has been rejected from the swing highs close to the level of 1.2627. Currently, this level was tested twice and now will act as the intraday technical resistance as the market is back towards the intraday support seen at 1.2663. Any violation of this level would open the road towards the next technical support seen at the level of 1.2602. The momentum remains strong and positive on the H4 time frame chart as the bulls are in charge of the price for now. Only a sustained breakout back above the level of 1.2726 would change the outlook to more bullish with a possible attack on the last wing high at 1.2732.

Weekly Pivot Points:

WR3 - 1.2908

WR2 - 1.2820

WR1 - 1.2766

Weekly Pivot - 1.2678

WS1 - 1.2624

WS2 - 1.2536

WS3 - 1.2482

Trading Outlook:

The weekly time frame chart reveals a decisive Bullish Engulfing candlestick pattern materializing amid the breakout beyond the 1.2340 level, signaling the dominance of bullish sentiment as prices continue to climb. Currently, the market is trading above the 50-week moving average (WMA) and is on course towards the 100 WMA positioned at 1.2504. Conversely, a sustained breakout below the critical long-term technical support at 1.1802 significantly heightens the probability of a substantial downward movement, potentially targeting the level of 1.1494.