FX.co ★ Technical analysis of GBPUSD for December 20, 2016

GBP/USD is in a bearish trend. This downward move in GBP/USD could continue as low as 1.22-1.2350 but I'm alert as I believe the trend will change to the upside and push the GBP/USD back towards 1.30 over the next few months.

The short-term trend is bearish for GBP/USD as long as the price is below 1.2510. Short-term support is at 1.23. If it is broken, we could see a deeper decline towards 1.22. Shorter-term resistance is at 1.2435. A break above it could push the price towards 1.26.

GBPUSD is expected to test the lower boundary of the red channel. If it is broken, we should expect the price to move towards the green horizontal line support below 1.22. This will be the last critical support for bulls. As long as the price is above 1.20, I remain longer-term optimistic for a move to 1.30.