FX.co ★ Trading Signal for GBP/USD for November 26 - 27, 2020: Key level 1.3370

The GBP/USD pair has retreated rapidly since its attempt to break the 1.34 zone, in the 1-hour chart it made several attempts and has failed to prevail. This morning of the American session, it has broken the zone of the 21-day EMA and is trading below this key level.

Analyzing the dollar index we note that since the European session it has recovered from the minimum of 91.80 and has a bullish force, which may weaken the British pound, it still resists losing the 1.33 barrier.

In the latest Brexit-related news, British Finance Minister Rishi Sunak has said that negotiations are still in porgress and that he remains hopeful that a deal can be reached.

On the other hand, British Prime Minister Boris Johnson has reiterated that the UK's position on fisheries has not changed and that they will not request more time to negotiate the trade agreement with the European Union. This news is weakening the hope for GBP/USD which we could see a drop in the next few hours.

Our recommendation in 1-hour charts that you can sell this pair below the EMA 21 (1.3370) this level is key, because above it we can expect a new upward movement, below we expect the pair to continue its downward course, with targets at the zone of 1.3305 and 1.3280.

The eagle indicator is showing bearish signal with the target at the 200 day EMA.

The market sentiment for this morning of Thursday November 26 shows that the percentage of 65% of investors are selling this pair, this shows a decrease, which supports our strategy of a possible bearish retracement.

Trading tip for GBP/USD for November 26 - 27

Sell below 1.3370 (EMA 21 days) with take profit at 1.3330 and 1.3289, stop above 1.3420

Sell with a convincing break below the triangle at 1.3330 (break out trend line) with take profit at 1.3280 and 1.3230, stop loss above 1.3370.