Annual Forecast for GBPUSD (2021): It May Increase to $1.40 Resistance Level

GBPUSD Price Analysis – December 25

Should the bulls are able to break up the key resistance level of $1.35, then, $1.38 level will be tested and it may extend to the $1.40. On the south side of the price, the support levels can be found at $1.32, and $1.31, and $1.28.

Key levels:

Supply levels: $1.35, $1.38, $1.40
Demand levels: $1.32, $1.30, $1.28

GBPUSD Monthly Chart: Bullish

GBPUSD is bullish in the monthly chart. The currency pair favors the buyer more than the sellers in the year 2020. The GBPUSD market started with the sellers pushing down the price at the $1.32 price level. The price was bottomed at the support level of $1.21 level; that is the 2019 September low level. The bulls reacted against the price decrease with the formation of the strong and massive bullish candle in July. The price increased to $1.30 in the same month. The pullback was observed in September to $1.28. The bulls resumed into the market in October till December. The price has tested the resistance level of $1.35 this month.

GBPUSD Monthly chart, December 25

The price may increase further in the year 2021 as the pair is trading above the 9 periods EMA and 21 periods EMA at a distance that indicates strong bullish momentum. Also the relative strength index period 14 is pointing up at 60 levels which connotes a strong bullish signal. Should the bulls are able to break up the key resistance level of $1.35, then, $1.38 level will be tested and it may extend to the $1.40. On the south side of the price, the support levels can be found at $1.32, and $1.31, and $1.28.

GBPUSD Medium-term Trend: Bullish

On the weekly chart, GBPUSD is under the bulls’ control. The bulls started dominating the GBPUSD market in March. The bullish movement has been consistent except for the normal pullback that was observed which is a normal phenomenon in a trending market. The price is heading towards $1.40 price level; the just mentioned level may be achieved in the New Year 2021.

GBPUSD Weeklychart, December 25

GBPUSD is trading above the 9 periods EMA and 21 periods EMA which indicates that the pair is under strong bullish pressure. The relative strength index period 14 is pointing up at 60 levels to indicate a buy signal.