GBP/USD - Week 51 - Consolidation period

Good old Brexit! Negotiations for a deal between the EU and UK are continuing and this could create a lot of volatility for this pair. Another important aspect that can affect the pair is the fact that UK is in another lockdown for the Christmas period with Covid-19 case rates nearly doubling in London over the past week. From a technical point of view, we expect the British Pound to get weaker for the short to medium term. As you can see in our analysis, the price rejected the upper parallel channel line and it may soon start a consolidation move to the downside.

Trade closed manually:

Looks like the price will break the top again, but our bias is to the downside.