GBP/USD Forecast: Bulls ready to challenge 2020 high

GBP/USD Current price: 1.3615

• The UK Health Secretary Matt Hancock announced more covid-related restrictive measures.
• Commons passes the post-Brexit deal, Lords likely to pass it before the end of the day.
• GBP/USD holds on to gains near 2020 high at 1.3624.

The GBP/USD pair flirted with this year, trading at 1.3617 mid-US afternoon. The pound surged on the broad dollar’s weakness and despite a tepid market’s mood. For the last 24 hours, the UK reported over 50K new coronavirus cases, resulting in UK Health Secretary Matt Hancock announcing more restrictive measures in the kingdom. Simultaneously, the AstraZeneca coronavirus vaccine has been approved for emergency use in the UK and the country plans to start using it as soon as next week.

Regarding Brexit, the House of Commons has passed the post-Brexit deal in a quick vote and moved it to the upper house. Lords are also expected to pass it without noise later in the day. The macroeconomic calendar has nothing to offer on the last day of the year.

GBP/USD short-term technical outlook

The GBP/USD pair is trading just above the 1.3600 figure as the day comes to an end, retaining its bullish bias. The 4-hour chart shows that the pair has advanced far above its 20 SMA, which is anyway flat above the longer ones. The Momentum indicator heads firmly higher within positive levels while the RSI hovers around 65, in line with another leg higher.

 Support levels: 1.3570 1.3515 1.3465

Resistance levels: 1.3625 1.3660 1.3710

View Live Chart for the GBP/USD