28.12.202114:05 Forex Analysis & Reviews: Analysis and forecast for GBP/USD on December 28, 2021

As already noted in today's review of the euro/dollar pair, many major currency pairs are trading very restrained. Nevertheless, the British pound has always stood out from the general trend. This factor can be stated in the current situation. It seems that the bulls for the pound have taken the course of trading under their control, and the GBP/USD pair is showing quite good growth. First of all, this is due to increased risk appetite, as concerns about the omicron strain of COVID-19 have somewhat weakened. Sterling is also supported by the unwillingness of the UK government to introduce new or strengthen the previous quarantine restrictions, given the period of Christmas and New Year holidays. Also, the factor of reducing the yield of treasury bonds, in particular treasuries, plays against the US dollar. In today's economic calendar, I recommend paying attention to the reports on the housing market, the publication of which is scheduled for 14:00 London time. An hour later, the index of manufacturing activity from the Federal Reserve of Richmond will be published. Well, now to the price charts.

Daily

As you can see, at yesterday's trading, the GBP/USD pair showed quite good growth, which was stopped by a 50 simple moving average. Let me remind you that in yesterday's review of this currency pair, such a scenario was assumed. Another important bullish factor was the closing of yesterday's session slightly above the support level of 1.3436. At today's auction, at the time of writing this article, the quote is trying to continue to rise and is already trading near another important technical level of 1.3445. If this continues, then a meeting with the most important psychological and historical level of 1.3500 will become inevitable. As can be seen on the chart, the 50.0 Fibo level passes near this mark along a grid stretched to a decrease of 1.3832-1.3168, and a little higher is the black 89 exponential moving average. I would venture to assume that the further direction of the British currency paired with the US dollar will depend on the passage of the landmark level of 1.3500 and 89 EMA. So far, a lot points to a bullish scenario, but let's not rush and observe the behavior of the price near the 35th figure.

H1

As can be seen on the hourly chart, the growth of the British currency is quite difficult. Recently, GBP/USD has mostly been trading in a sideways range, but at the same time, the tendency of the exchange rate to move in a northerly direction is visible. And now, at the moment of the end of the article, the pound/dollar is trying to make another break up. However, given the thin New Year's market and the frequent change of investor sentiment, the author of this article personally has no complete confidence in the continuation of the pair's rise. And therefore I offer two options for positioning. The first is purchases, which are better to open not at the peak of the market, but after minor pullbacks to the price zone of 1.3440-1.3420. If bearish candles begin to appear on this or four-hour charts on the approach to the 1.3500 level, the moment will come for making decisions about opening deals for sale.