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Daily analysis of GBP/USD for December 20, 2016

GBP/USD erased Friday's gains in some way during Monday's session and currently we can find a strong support around 1.2387. We expected to see a rebound above it in order to resume the corrective bias, but bear in mind that the pair did a new low during yesterday and we can see another decline towards the 1.2327 level.

1482177018_GBPUSDH1.png

H1 chart's resistance levels: 1.2462 / 1.2564

H1 chart's support levels: 1.2387 / 1.2327

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2387, take profit is at 1.2327 and stop loss is at 1.2447.

The material has been provided by InstaForex Company - www.instaforex.com