December 29, 2021

GBP/USD Continues To Trend In Recent Highs

 The encouraging news from several talks to resolve the Brexit crisis is seen to continue to influence the momentum of the Pound to remain strong throughout December.


That is when the European Union (EU) and the UK are reported to have reached an agreement in increasing the quota of British workers related to the issue of fishermen which will take effect from April 2022.


The USD also seemed to show some dominance after gaining support from low currency liquidity and linked to speculation of a tapering move by the Federal Reserve (Fed).




The price movement on the chart of the GBP/USD currency pair which has just wanted to continue its rise seems to have slowed down a bit at the beginning of the New York session yesterday (Tuesday) to return to level.


But the grief is not so hurt after the price ability seems to have managed to make the latest high level during the 6 -week period around 1.34600.



The point of departure is that the price movement continued to continue the horizontal action during the beginning of the Asian session today (Wednesday) and continued to trade at the Moving Average 50 (MA50) barrier level on the 1 -hour timeframe.


However, the high of 1.34600 will be the initial focus level that will be achieved if the price continues to translate excellent performance in making a more impressive rise.


Thus the high probability for the price movement to maintain the uptrend is going to show the ability for the price to be able to record a climb to the nearest resistance zone at 1.35000.


In particular, the target may also be placed at the previously tested highs around 1.33640 if the price remains bearish and thus will give the beginning of a downtrend pattern.


While the RBS (resistance become support) zone of 1.33000 may be used as the next target if the price movement declines lower by the close of the fourth quarter of 2021.