FX.co ★ Technical analysis of GBP/USD for December 21, 2016

GBPUSD is near important long-term support. There are several bullish divergence signals that provide a big warning to GBPUSD bears. A full scale trend reversal is very close. Traders need to be on high alert.

Green horizontal line - support

The GBP/USD is inside its trading range and approaching the lower boundary of this range. A bounce off this area is justified and highly probable if we take into account the bullish divergence signs of the oscillators. Support is at 1.23 and next is found at 1.2130.

Short-term resistance is found at 1.2380-1.2390. A clear break above it will open the way for a bounce toward 1.2550. Trend remains bearish as price is making lower lows and lower highs. In the 4 hour chart we see bullish divergence signs as oscillators do not make lower lows as price does.