- Summary:
- GBPUSD rising wedge posses a threat to the bulish trend. Bears may have an interest selling the pair for 1.30 in December.
The GBPUSD pair reflects the lower dollar narrative seen across the FX dashboard. The Dollar index broke below important support and the slide in the greenback continues.
However, the GBPUSD faces some tough challenges ahead. On the one hand, the Brexit negotiations are ongoing as we enter the last month until the end of the transition period. With no deal in sight, the GBP may end up hurt as we get closer to the end of the trading year.
On the other hand, the technical picture looks weak here too. The pair seems to have formed a rising wedge that threatens to break lower.
GBPUSD Technical Analysis
The safest way to trade the GBPUSD pair at this point is to wait either for a new high above 1.35 or a break below the rising line. Plenty of events on both sides of the Atlantic are scheduled for the month of December, so the pair will see increased volatility.
Aggressive bears may want to sell at the market and add on a move either higher or lower. If that is the case, bears would need a stop around 1.3575 and target a move back below 1.30 on a no-deal being announced by the end of the year. This way, the risk-reward ratio makes sense as it exceeds 1:2.
Dow Jones Daily Chart
