Forecast and trading signals for GBP/USD

The GBP/USD pair continues to move erratically on Wednesday. Recall that at the end of the previous week and at the beginning of the current quote, the pound unexpectedly fell by 300 points. Many thought that a downward trend would now begin, which has been brewing for a couple of months, but instead the pair recovered 250 points over the next couple of days. The price initially left the rising channel, and then returned to it, thus forming a new false signal for the downward trend. By the way, given the current technical picture, there are still chances for a strong downward movement. We can even assume that quotes could fall below the previous local low of 1.3224.

We have two trading ideas for December 10:

1) Buyers for the pound/dollar pair tried to regain the initiative yesterday, but their attempts were not enough. They need to return the pair above the resistance area of 1.3394-1.3402, and only after that will it be possible to count on an upward movement while aiming for the resistance level of 1.3556, which is very far away. Take Profit in this case will be up to 130 points. The pair is still moving erratically, which has been going on for several weeks, if not more. The trader needs to decide for himself whether to trade in such conditions.

2) Sellers seem to have made a tangible step towards a new downward trend, but they failed to overcome the support level of 1.3305. We recommend selling the pair while aiming for the support area of 1.3160 -1.3184 if quotes settle below 1.3305. Take Profit in this case can be up to 100 points. You can also open short deals for a rebound from below the 1.3379 and 1.3380 lines.