GBP USD is trading below the 21 SMA located at 1.3225. In the European session, the pound fell to the level of 1.3183, just above the key support of 2/8 Murray. In the next few hours, the inflation data for November in the United States will be published and it is likely that there will be strong volatility in all pairs against the dollar.
If the inflation data in the United States is favorable for the US dollar, the British pound could break the key support of 1.3185 and continue its fall until the next support located at 1.3061. A reading above 0.7% on month and a 6.8% annual reading are expected which could favor the pound and could break above the 21 SMA (1.3225).
According to the 4-hour chart, GBP / USD continues to clearly show a bearish bias. A breakout and consolidation above 1.3225 could favor the British pound and we could see a move towards the zone of resistance 5/8 located at 1.3305.
You can buy only if the pair settles above the 21 SMA at 1.3225 and above the bearish channel. Above 1.3250, there will be a clearer buy signal and above 1.3305(5/8) the uptrend will be established.
Our forecast for the next few hours for the British pound is a consolidation above 1.3225 (21 SMA). As long as GBP/USD trades above this zone, we will have an opportunity to buy with the target at 1.3305 (5/8) and 1.3411 (200 EMA). If 5/8 is broken, we could buy with targets at 1.3427 (6/8).
The market sentiment report for today, December 10, shows that there are 71.68% of operators who are buying the GBP/USD pair. This data provided a bearish sign in the medium term. Since the pair is heavily oversold, a correctional movement to the resistance zone 200 EMA at 1.3411 is expected first. The eagle indicator is showing a bullish bias, moving above the trend channel.
Support and Resistance Levels for December 10 - 13, 2021
Resistance (3) 1.3305
Resistance (2) 1.3263
Resistance (1) 1.3237
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Support (1) 1.3183
Support (2) 1.3151
Support (3) 1.3133
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A trading tip for GBP/USD on December 10 - 13, 2021
Buy if breaks above 1.3225 (21 SMA) with take profit at 1.3305 (5/8) and 1.3411 (200 EMA), stop loss below 1.3183.
