FX.co ★ Technical analysis of GBP/USD for November 17, 2022

All elements being clearly bullish market, it would be possible for traders to trade only long positions on the GBP/USD pair as long as the price remains well above the price of 1.1761. The GBP/USD pair will continue rising from the level of 1.1761 in the long term. It should be noted that the support is established at the level of 1.1761 which represents the last bearish wave. 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 1.1761. So, buy above the level of 1.1761 with the first target at 1.1875 in order to test the daily resistance 1.

The buyers' bullish objective is set at the level of 1.2026 (last bullish wave). A bullish break in this resistance would boost the bullish momentum. The buyers could then target the resistance located at 1.2026.

This suggests that the pair will probably go up in coming hours. If the trend is able to break the level of 1.2026 (double top), then the market will call for a strong bullish market towards the objective of 1.2026 this week.

If there is any crossing, the next objective would be the resistance located at 1.2100. The level of 1.2100 is a good place to take profits. Moreover, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). Since the trend is above the 61.8% Fibonacci level (1.1761), it means the market is still in a uptrend.

From this point, the GBP/USD pair is continuing in a bullish trend from the new support of 1.1761. This is shown to us as the current price is in a bullish channel. According to the previous events, we expect that the GBP/USD pair will move between 1.1761 and 1.2100 in coming hours.

However, beware of bullish excesses that could lead to a possible short-term correction; but this possible correction would not be tradeable.

On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.1761, a further decline to 1.1596 can occur. It would indicate a bearish market.

Forecast :

Pound Sterling is currently trading at 1.1850. However, if the trend reverses from this point, then a possible future share price target could be 1.2026. If the price of Pound Sterling is trading above 1.2026 then possibility of upside targets getting achieved is higher around the level of 1.2100.

Conclusion :

The basic bullish trend is very strong on the GBP/USD pair but the short term shows some signs of running out of steam. Nevertheless, a purchase could be considered as long as the price remains above 1.1761. Crossing the first resistance at 1.2026 would be a sign of a potential new surge in the price. Buyers would then use the next resistance located at 1.2100 as an objective. Crossing it would then enable buyers to target 1.2100. Caution, a return to below 1.1761 would be a sign of a consolidation phase in the short-term basic trend. If this is the case, remember that trading against the trend may be riskier. It would seem more appropriate to wait for a signal indicating reversal of the trend. In the very short term, the general bullish sentiment is not called into question, despite technical indicators being indecisive. Daily range : 1.1761 - 1.2100.