FX.co ★ Technical analysis of GBP/USD for November 25, 2020

The GBP/USD pair will continue rising from the level of 1.3319 in the long term. It should be noted that the support is established at the level of 1.3319 which represents the daily pivot point on the H1 chart.

The price is likely to form a double bottom in the same time frame. Accordingly, the GBP/USD pair is showing signs of strength following a breakout of the highest level of 1.3350.

So, buy above the level of 1.3350 with the first target at 1.3396 in order to test the daily resistance 1. Moreover, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100).

This suggests that the pair will probably go up in coming hours. If the trend is able to break the level of 1.3396, then the market will call for a strong bullish market towards the objective of 1.3448 today. The level of 1.3448 is a good place to take profits.

On the downtrend: If the pair fails to pass through the level of 1.3319, the market will indicate a bearish opportunity below the level of 1.3319.

Hence, the market will decline further to 1.3319 and 1.3272 to return to the daily support. Moreover, a breakout of that target will move the pair further downwards to 1.3195 in order to form the double bottom.

On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.3272, a further decline to 1.3195 can occur. It would indicate a bearish market. Overall, we still prefer the bullish scenario, which suggests that the pair will stay above the zone of 1.3195 this week.