FX.co ★ Trading Signal for GBP/USD for December 02 - 03, 2020: Sell Below EMA 21

The GBP/USD pair could not hold above the 6/8 murray zone. At the time of writing this analysis, it is trading at 1.3344, and below the 21 day EMA, which is likely to be pressure bearish for the British pound with targeting 5/8 murray at 1.3305 for the next few hours.

The Brexit news continues to be the main catalyst for price action, and also the recovery of USDX this morning of the American session is supporting the bearish pressure of the pair.

In the 4-hour chart, you can notice that the price has left a double top at 1.3439. Being unable to exceed this level, we saw a very rapid fall of the pair. Our recommendation is to sell the pair below this level, and below the 21 EMA days (blue line) 1.3355, the eagle indicator supports our bearish strategy as it is close to oversold levels.

On the contrary, you should refrain from selling only if the pair consolidates above 1.3365, as we could expect further bullish momentum at the key level of 1.13440 and 1.35.

The immediate supports of GBP/USD, we find them in the area of 1.3305 if it breaks this level, we could expect a pullback and sell with targets up to the 200-day EMA (magenta color) around 1.3170 in the short term.

The market sentiment for this morning of December 2 is showing that there are 58% that are selling this pair, compared to yesterday's figure we saw a 4% decrease which is likely to see a drop in the pair to the levels of 1.31 and 1.30 in the next few days.

Trading tip for GBP/USD for December 02 – 03

Sell if the GBP/USD under bearish pressure (below EMA 21) at 1.3355, with take profit at 1.3305 (5/8 murray) and 1.3181 (4/8 murray), and stop loss above 1.3390.

Buy if the pair rebound around 1.3305/ 1.3285, with take profit at 1.3352 (EMA 21) and 1.3410 (6/8), stop loss around 1.3260.

Sell if the pair breakout to 1.3285, (strong Support), with take profit 1.3210 and 1.3170 (EMA 200), Stop loss above 1.3340.