FX.co ★ Technical analysis of GBP/USD for November 29, 2022

Overview :

The bullish trend is currently very strong for the GBP/USD pair. As long as the price remains above the support at 1.1972, you could try to take advantage of the bullish rally in short term. The first bullish objective is located at 1.2152 (this price is coincided with the ratio 100% of Fibonacci retracement levels).

The bullish momentum would be revived by a break in this resistance. For three weeks GBP/USD increased within an up channel, for that the GBP/USD pair hits new highs 1.2000 and 1.2100. The GBP/USD price had a significant breakout above the price of 1.1972 and 1.2000. GBP/USD is part of a very strong bullish trend.

Traders may consider trading only long positions as long as the price remains well above the levels of 1.1972 and 1.2000. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 1.1972, which coincides with a golden ratio (78% of Fibonacci). Consequently, the first support is set at the level of 1.1972. Hence, the market is likely to show signs of a bullish trend around the spot of 1.1972 and 1.2000. The next resistance located at 1.2152 is the next bullish target to be reached. A bullish break in this resistance would boost the bullish momentum. The bullish movement could then continue towards the next resistance located at 1.2152. Closing above the pivot point (1.1972) could assure that GBP/USD will move higher towards cooling new highs.

The bulls must break through 1.2100 USD in order to resume the uptrend. Buyers would then use the next resistance located at 1.2152 as an objective (this price is coincided with the ratio 100% of Fibonacci retracement levels - the double top - te last bullish wave on the hourly chart). The GBP/USD price is bullish but climbing higher will be strict, our next target 1.2200. Crossing it would then enable buyers to target 1.2200.

Be careful, given the powerful bullish rally underway, excesses could lead to a short-term rebound. Also, it should be noted that Pound unites as the bears lose their momentum. The market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside. The price has been consolidating between the 1.1978 and 1.2200 over the last few weeks, following a massive rising from the 1.2200 mark. So far, the price has been supported by the 1.1978 and 1.2200 range.