Following Christmas holidays, GBP/USD started the last week of the year with a bearish consolidation, as the price remains below the 200 SMA at H1 chart. Currently, it's finding demand around the 1.2250 zone, where a breakout lower should open the doors to test the 1.2185 level, but possibly because of low volume in trading, the pair may start to do corrective moves to the upside.
H1 chart's resistance levels: 1.2318 / 1.2390
H1 chart's support levels: 1.2249 / 1.2185
Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2249, take profit is at 1.2185 and stop loss is at 1.2312.
The material has been provided by InstaForex Company - www.instaforex.com