The British pound reached price levels of November 23, 2020 around 1.3352. At the beginning of the American session, it is trading at 1.3396. GBP/USD is expected to consolidate above the SMA of 21 located at 1.3373.
This technical rebound is likely to give it a push to the resistance level of 1.3518. There is the 200 EMA and the top of the bearish channel formed on the 1-hour chart.
The 1-hour chart shows that GBP / USD has been moving below the descending channel that was formed since October 29. The top of the channel located at 1.3520 will offer strong resistance to the pair.
Only a daily close above 1.3520 and above the 200 EMA could open the stage for a more decisive bounce towards the key level of 8/8 murray around 1.3671.
The eagle indicator has reached the key level of 10 and is showing an imminent sign of a technical bounce. As long as it remains above 1.3370, there is a possibility that GBP could regain some of its losses and could recover in the next few hours.
The market sentiment report shows that there are 77.08% of traders who are buying GBP / USD. This is a negative sign for the British pound. A recovery is expected in the next few hours as it is at oversold levels and then it could resume its main downward movement. The key level to sell is at the resistance of the EMA 200 around 1.3520.
Our trading plan for the next few hours is to buy the British pound as long as it is above 1.3370. Our targets will be at 6/8 murray around 1.3420. If GBP/USD surpasses this barrier, it could reach 1.3518. A daily close below 1.3370 could resume its bearish move and GBP/USD could fall to support of 1.3305 (5/8).
Below we leave the support and resistance levels for the next two days.
Support and Resistance Levels for November 12 - 15, 2021
Resistance (3) 1.3487
Resistance (2) 1.3459
Resistance (1) 1.3413
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Support (1) 1.3338
Support (2) 1.3310
Support (3) 1.3262
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A trading tip for GBP/USD for November 12 - 15, 2021
Buy above 1.3373 (SMA 21) with take profit at 1.3427 (6/5) and 1.3520 (EMA 200), stop loss below 1.3328.