EUR/USD forecast for December 07, 2020

On the weekly time frame for the EUR/USD pair, we see that euro started the week badly and that today, due to Brexit, there is more pressure on the Euro and the pound. The dollar should use this to its advantage and make short-term gains.
If the pullback is continued, we can find the first support at the 1.20000 psychological level for investors. At the bottom, we have the support of moving averages MA50 and MA100; candlestick are far from them, and looking like that, they will always touch the lines MA50 and MA100 so that we will see the approach to them. Today, the bearish scenario is more likely.

The daily time frame shows us a large growing parallel channel and that the EUR/USD pair has reached almost the top of the channel at 1.21500-1.22000, and there we now have strong resistance. The pullback is possible by looking at the chart to potential support on moving averages MA50 and MA100.

GBP/USD forecast for December 07, 2020

If the candlestick closes as it does now, the continuation of the bearish scenario is possible. With the Fibonacci level setting, our first support is at 1.20300. The broader picture tells us that if we see a pullback, we can expect it to a large Fibonacci setting at a 23.6% level around 1.18000-1.18200.

When we set the chart on a four-hour time frame, we see the resistance at 1.21500 and the potential bearish scenario. We can set a smaller trend line as the resistance line for the bullish option and target above 1.22000, and if it is established as a good resistance, we will use it as a resistance line.
The first support for the euro is the Fibonacci level of 23.6% and the moving average of MA50 other Fibonacci levels coincide with other moving averages. News about Brexit is in focus today; we can highlight the following: negotiations between the UK and the EU resumed on Sunday, and disputes over fishing rights, competition rules, and implementing the agreed rules continue to create problems.

Prime Minister Boris Johnson will hold talks with European Commission President Ursula von der Leyen on Monday night. Negotiations between Great Britain and the EU should continue in Brussels in the final attempt to reach a trade agreement after Brexit.