FX.co ★ Technical Analysis of GBP/USD for November 7, 2022

Technical Market Outlook:

The GBP/USD pair has bounced from the extremely oversold market conditions and tested the channel breakout from below on the H4 time frame chart and reversed lower. Moreover, the market keeps trading below the key long-term and short-term technical resistance located at 1.1410, so the bears are still in control over this market. The next target for bears is seen at the level of 1.1149 which is the last week low. Any breakout below this level will directly expose the next technical support seen at 1.1062 and 1.1023.

Weekly Pivot Points:

WR3 - 1.14110

WR2 - 1.13668

WR1 - 1.13400

Weekly Pivot - 1.13226

WS1 - 1.12958

WS2 - 1.12784

WS3 - 1.12342

Trading Outlook:

Despite the recent upward ABC correction towards the level of 1.1625, the Bearish Engulfing candlestick pattern was made at the top of the bounce and the bears are still in charge of the market. The next long-term target for them is the parity level. The level of 1.0351 has not been tested since 1985, so the down trend is strong, however, the market is extremely oversold on longer time frames already. In order to terminate the down trend, bulls need to break above the level of 1.2275 (swing high from August 10th).