GBPUSD Technical Analysis Report 07 December, 2020

  • GBPUSD reversed from major resistance level 1.3490
  • Likely to fall to support level 1.3150

GBPUSD currency pair continues to fall inside the sharp downward corrective wave (ii) which started previously from the major resistance level 1.3490 (which stopped the sharp daily uptrend in August as can be seen below) – strengthened by the upper daily Bollinger Band and by the resistance trendline of the narrow up channel from the middle of September. The downward reversal from the resistance level 1.3490 created the daily Shooting Star.

Given the strongly bearish Sterling sentiment on fears the Brexit deal will not be reached until the end of this year – GBPUSD can be expected to fall toward the next support level 1.3150 (former monthly high from October and the target price for the completion of the active short-term corrective wave (ii)).

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