GBPUSD Exchange Rate Is Back on Its Big Figure At 1.3000

Recently, currency in the U.K. bulls is back at work. This is to facilitate in pushing the GBP USD exchange rate up for another re-test of the vaulted 1.3000 area on the chart.

Meanwhile, a similar test in late-October dropped flat. This is as buyers dried up further than the psychological level.

This has also preceded into approximately six weeks of range-bound behavior.

Learn more about Forex Market Movements. Read here: Market News and Charts for December 03, 2019

On the flip side, it looked at multiple times during this period. That range presented the new setup of being able to deal with mean reversion with a prior trend-side bias.

Moreover, support has filled-in from zones all-around 1.2820 and 1.2900 over the past few weeks.

Adding some context to the condition, the US dollar has been in a bearish move over the previous couple of days. This is after sellers have come-in off with a significant area of resistance.

The 98.33-98.50 area on DXY assisted in holding the highs in mid-November. It is apprehending a bullish advance before bears re-entered the situation.

Reversion with A Prior Trend-Side Bias Scenario

Late last month, the scenario happened again, and sellers leaped on the first trading day of December.

Meanwhile, the setup does provide a bit of an explanation for that topside push in GBP/USD.

It also produces a challenging backdrop. This is to aim for continuation until the US Dollar/DXY takes out the mid-November swing-low at the common area of 97.70.

The movement had formerly set a double-top formation in Q4 of last year.

At this time, given the backdrop, bullish preferences would still remain as applicable in the pair for most outlooks.

There is one side from which bearish scenarios could be accommodated. It would be looking for a quick turnaround for the significant number of a retracement in the recent bullish trend.

Moreover, this could open the door for near-term targets around 1.2950.

Stops can also adjust to break-even. Meanwhile, further targets will be set at prior support/resistance areas around 1.2900, or perhaps even 1.2820 should the range remain.