FX.co ★ GBP/USD dynamics scenarios on December 6, 2023

GBP/USD attempts to develop a downward trend and resume the long-term bearish trend after breaking through two important support levels at 1.2614 (200 EMA on the 1-hour chart) and 1.2610 (144 EMA on the weekly chart). A break below Tuesday's low of 1.2577 may signal the resumption of short positions with targets at the support level of 1.2460 (200 EMA on the 4-hour chart).

Further decline and a breakdown of the key support level of 1.2430 (200 EMA on the daily chart) will lead GBP/USD into the zone of the medium-term bearish market.

In this case, below the key resistance level of 1.2740 (200 EMA on the weekly chart), GBP/USD remains in the zone of the long-term bearish market.

If, on the weekly chart, technical indicators OsMA and Stochastic signal a continuation of the upward correction, then on the daily chart, they have already turned down, signaling the exhaustion of the bullish impulse and the resumption of the decline.

In an alternative scenario, and after breaking through the resistance zone at levels 1.2600, 1.2610, 1.2614, 1.2630, the upward correction will resume. However, for a breakout into the zone of the long-term bullish market, the price needs to overcome the key long-term resistance level of 1.2740.

Thus, short positions are preferable below the mentioned resistance levels of 1.2610, 1.2614, 1.2630.

Support levels: 1.2570, 1.2524, 1.2500, 1.2460, 1.2430, 1.2400, 1.2300, 1.2200, 1.2120, 1.2100, 1.2090, 1.2040, 1.2000

Resistance levels: 1.2600, 1.2610, 1.2614, 1.2630, 1.2700, 1.2740, 1.2800, 1.2900, 1.2995, 1.3100, 1.3140, 1.3200

Trading scenarios

Main scenario: Sell Stop 1.2565. Stop-Loss 1.2635. Targets 1.2524, 1.2500, 1.2460, 1.2430, 1.2400, 1.2300, 1.2200, 1.2120, 1.2100, 1.2090, 1.2040, 1.2000

Alternative scenario: Buy Stop 1.2635. Stop-Loss 1.2565. Targets 1.2700, 1.2740, 1.2800, 1.2900, 1.2995, 1.3100, 1.3140, 1.3200

"Targets" correspond to support/resistance levels. This also does not mean that they will necessarily be reached, but can serve as a guide when planning and placing your trading positions.