CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money before trading CFDs.

Can GBP/USD Recover Higher?

December 7, 2021


  • GBP/USD has struggled to recover above 1.3350.
  • Bearish trend line has formed resistance near 1.3280.

The British Pound, US Dollar pair tested resistance near 1.3350. GBP/USD struggled to gain momentum before dropping below the 1.3300 support level.

GBP/USD 4-Hour Chart (Trend: BEARISH)

On the 4-hour chart, the pair dropped to as low as 1.3200 before consolidating near 1.3280, well below the 100-MA (red) and 200-MA (blue).

For the pair to turn bullish, the quote will first need to test resistance near 1.3270. There is also a major bearish trend line forming resistance near 1.3280. This line is also close to the 23.6% Fibonacci retracement level of the downward move from the swing high of 1.3513 to the swing low of 1.3194. Above this, there is further resistance near 1.3350 and the 50% Fib retracement level (of the 1.3513 high to the 1.3194 low). A clear break above the 1.3300 and 1.3350 levels could trigger a decent recovery towards the 1.3600 level.

In contrast, if the pair continues bearish, the quote will next test the 1.3200 and 1.3180 support levels. A break below these levels could see the quote gain momentum, dropping down as far as 1.3050, a level last seen in November 2020.


Open an Account. Get started in less than 5 minutes