FX.co ★ Technical analysis of GBP/USD for November 11, 2022

The GBP/USD pair will continue to rise from the level of 1.1652. The support is found at the level of 1.1547, which represents the 61.8% Fibonacci retracement level in the hourly chart. Slightly bullish trend on the GBP/USD pair. It is difficult to advise a trading direction under these conditions. The first resistance is located at the price of 1.1795.

The Pound remained above the levels of 1.1652 and 1.1700, not far from the key 1.1652 evenness mark as more data is pointing out that a recession is looming. Final PMI figures confirmed the GBP/USD pair Area private sector activity contracted for the first time since last week. Intraday bias in the GBP/USD pair remains upwards for the moment.

The first support is located at 1.1652. It could stay away while waiting for a more pronounced price movement on this instrument. A new analysis could then be produced that would give clearer signals. The price is likely to form a double bottom.

Today, the major support is seen at 1.1652, while immediate resistance is seen at 1.1795. Accordingly, the GBP/USD pair is showing signs of strength following a breakout of a high at 1.1795. Range trading continues in the GBP/USD pair and intraday bias stays upwards at this point.

So, buy above the level of 1.1652 with the first target at 1.1795 in order to test the daily resistance 1 and move further to 1.1850.

Also, the level of 1.1900 is a good place to take profit because it will form a new double top. Amid the previous events, the pair is still in an uptrend; for that we expect the GBP/USD pair to climb from 1.1700 to 1.1900 today.

At the same time, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.1652, a further decline to 1.1547 can occur, which would indicate a bearish market. Technical indicators (RSI) are indecisive in the very short term but do not change the general bullish opinion of this analysis.

Conclusion :

We should see the pair climbing towards the next target of 1.1795. The pair will move upwards continuing the development of the bullish trend to the level 1.1850 and 1.1900 in coming days. On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.1652, a further decline to 1.1547 can occur. It would indicate a bearish market.