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Forex Analysis & Reviews: Technical analysis of GBP/USD for December 06, 2022
time 07.12.2022 12:18 AM
time Relevance up to, 08.12.2022 12:18 AM

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Overview:

The GBP/USD pair has faced strong resistances at the levels of 1.2173 because support had become resistance on December 06, 2022. So, the strong resistance has been already formed at the level of 1.2173 and the pair is likely to try to approach it in order to test it again.

However, if the pair fails to pass through the level of 1.2173, the market will indicate a bearish opportunity below the new strong resistance level of 1.2173 (the level of 1.2173 coincides with a ratio of 78% Fibonacci).

Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50). Thus, the market is indicating a bearish opportunity below 1.2173 so it will be good to sell at 1.2173 with the first target of 1.2069.

It will also call for a downtrend in order to continue towards 1.2003. The daily strong support is seen at 1.2003.

The volatility is a statistical measure of a market's price movements in a given period of time. If prices for a currency have shown large instability over a short time period, then the market is highly volatile. If currencies are relatively stable, then volatility is low. In the very short term, the general bullish opinion of this analysis is in opposition with technical indicators.

So long as the invalidation level of this analysis is not breached, the bullish direction is still favored, however the current short term bearish correction should be carefully watched.

On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.2245.

GBPUSD
Great Britain Pound vs US Dollar
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