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16.12.201913:24 Forex Analysis & Reviews: Technical analysis of GBP/USD for December 16, 2019

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Overview:

Pivot point: 1.3281.

The GBP/USD pair broke resistance which turned to strong support at the level of 1.3281 last week. The level of 1.3281 is expected to act as major support today.

So, we expect the GBP/USD pair to continue moving in a bullish trend from the support levels of 1.3281 and 1.3514.

Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Consequently, the first support is set at the level of 1.3281 (horizontal blue line).

Also, it should be noted that the weekly pivot point will act as major support today.

The market is likely to show signs of a bullish trend around the spot of 1.3281/1.3300.

In other words, buy orders are recommended above the spot of 1.3281 or 1.3300 with the first target at the level of 1.3514 (the weekly resistance 1).

If the trend breaks the first resistance at 1.3514, the pair will move upwards continuing the bullish trend development to the level of 1.3620 in order to test the resistance 2 in coming days.

On the other hand, if the GBP/USD pair fails to break through the resistance level of 1.3281 this week, the market will decline further to 1.3049. The pair is expected to drop lower towards at least 1.3049 with a view to test the double bottom.

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