FX.co ★ Technical analysis of GBP/USD for November 09, 2022

The GBP/USD pair has broken support at the level of 1.1454 which acts as a resistance now. According to the previous events, the GBP/USD pair is still moving between the levels of 1.1454 and 1.1200. Therefore, we expect a range of 154 pips in coming two days or three. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. Hence, the price spot of 1.1454-1.1400 remains a significant resistance zone.

Consequently, there is a possibility that the GBP/USD pair will move downside. The structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.1454, sell below 1.1454 or/and 1.1400 with the first target at 1.1303. Furthermore, the price has been set below the strong resistance at the level of 1.1337, which coincides with the 38.2% Fibonacci retracement level.

This resistance has been rejected several times confirming the downtrend. Additionally, the RSI starts signaling a downward trend. Besides, the daily support 1 is seen at the level of 1.1400. If the pair fails to pass through the level of 1.1400, the market will indicate a bearish opportunity below the level of 1.1303. So, the market will decline further to 1.1264 in order to test the daily support 2.

Market analysis > Technical analysis : Today, the first support level is seen at 1.1337, and the price is moving in a bearish channel now. As a result, if the GBP/USD pair is able to break out the first support at 1.1337, the market will decline further to 1.1200 in order to test the daily support 3. However, traders should watch for any sign of a bullish rejection that occurs around 1.1337. The level of 1.1337 coincides with 38.2% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 38.2% Fibonacci level, the market is still in a downtrend. Overall, we still prefer the bearish scenario.