empty
 
 
01.12.2020 10:47 AM
Technical analysis of the GBP/USD pair for December 2020

Trend analysis

The price from the level of 1.3371 (closing of the November monthly candlestick) may likely rise this month towards the first target of 1.3481 – an upper fractal (blue dotted line), monthly candlestick from 09/01/20. In case of testing this level, it is possible to further move upwards to the next upper target of 1.3600 – the pullback level of 76.4% (red dotted line). Lastly, the final monthly target may be the historical resistance level of 1.3742 (blue dotted line).

This image is no longer relevant

Figure 1 (monthly chart)

Indicator analysis:

- indicator analysis - up;

- Fibonacci levels - up;

- volumes - up;

- candlestick analysis - up;

- trend analysis - down;

- Bollinger lines - up;

A possible upward trend can be concluded based on a comprehensive analysis.

The overall result of the candlestick calculation on the monthly chart: the price will most likely have an upward trend with no first lower shadow (the first week of the month is white) at the monthly white candlestick and with no second upper shadow (the last week is white).

The most likely scenario: from the level of 1.3371 (closing of the November monthly candlestick), an upward movement is likely to the first target of 1.3481 – upper fractal (blue dotted line), monthly candlestick from 09/01/2020. After testing this level, it is possible to further increase towards the next upper target of 1.3600 - the pullback level of 76.4% (red dotted line). The final monthly target may be the historical resistance level of 1.3742 (blue dotted line).

An unlikely scenario: working downwards to the target of 1.3333 - the support line (black bold line) is unlikely, after the price rises from the level of 1.3371 (closing of the November monthly candlestick) to the target of 1.3481 – upper fractal (blue dotted line), the monthly candlestick from 09/01/2020.

Stefan Doll,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback