Forecast for GBP/USD on December 28, 2020


The Christmas holidays have not yet passed in the west (it is a holiday in the UK and Canada today), when the press has already begun to describe the adopted Brexit agreement as "weak", "incomplete", "raw", "curtailed", "infringing"... This is strange, because leaving the EU does not imply anything more remarkable than the UK being part of the EU, which we have been talking about for the past two months. The biggest problem for England remains the issue of access to the EU market of financial services. This issue will still be resolved as an additional one to the agreement reached.

The daily chart shows that the price is in a neutral state between support at 1.3495 and the trend line at 1.3618. As the main scenario, we are waiting for the price to settle below the support line and for it to fall to the MACD line towards the 1.3275 area.

The four-hour chart shows that the price is in an upward short-term trend; the price can stay in this state for another day until the indicators finally cool down.

The 1.3495 price level can even fall even deeper to 1.3436, where the MACD line passes. Getting the price to settle below it will become a more reliable signal for a succeeding decline. We are waiting for such technical conditions.

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