GBP/USD: technical analysis 12.12.19

Current trend

GBP/USD is in the stage of a downward correction after growing to the level of 1.32284, but the upward trend is still maintained. If the "bulls" manage to raise the rate above the level of 1.32300, the growth can continue to the area of 1.32446. This level can prevent the instrument from growing, as the possibility of the reverse of the price is high there. Meanwhile, the breakout and pair’s sustained trading above 1.32446 may push GBP/USD towards a 9-month high 1.32700-1.33057 resistance area.

Alternative scenario

The pullback below 1.32141 will be a signal for a downward correction formation and give a prospect of decline to 1.31836 level. This level seems a strong support zone. There is a chance of an upward rebound, while its breakdown would allow the fall to continue to 1.31600 level, which corresponds to the middle line of Bollinger Bands. The breakdown of this level could trigger a pair’s decline to 1.31226 support.

Technical indicators

Technical indicators maintain a buy signal.

Bollinger Bands are diverging on the background of bullish momentum.

MACD is growing in a positive zone.

Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Resistance: 1.32284, 1.32446, 1.32700, 1.33057.
Support: 1.32141, 1.31836, 1.31600, 1.31226.

Trading recommendations

Short positions can be opened below the level of 1.32141 with the target at around 1.31836 and stop-loss at 1.32242 .
Long positions can be opened above the level of 1.32284 with the target at around 1.32446-1.32600 and stop-loss at 1.32352 .

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