Forex Analysis & Reviews: Technical Analysis of GBP/USD for December 9, 2022

Technical Market Outlook: The GBP/USD pair has been seen bouncing up from the technical support located at 1.2106 and is moving closer to the swing high located at 1.2343. The momentum remains strong and positive which supports the short-term bullish outlook for GBP. The nearest technical support is still seen at 1.2106, so in a case of an unexpected breakout lower, the next target for bears is seen at 1.1897 (30th November low). Also, please notice the Bearish Divergence between the price and the momentum indicator that might have an impact on the next bearish movement.

Weekly Pivot Points:
WR3 - 1.24283
WR2 - 1.23713
WR1 - 1.23415
Weekly Pivot - 1.23143
WS1 - 1.22845
WS2 - 1.22573
WS3 - 1.22003

Trading Outlook:
The bulls are temporary in control of the market and the 50% Fibonacci retracement of the last big wave down located at 1.2293 had been tested, so a down trend resumption is possible. On the other hand, the level of 1.0351 has not been tested since 1985, so the down trend is strong. In order to terminate the down trend, bulls need to close the weekly candle above the level of 1.2275 (swing high from August 10th).

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Analysis are provided by InstaForex

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