FX.co ★ Technical Analysis of GBP/USD for November 7, 2023

Technical Market Outlook:

The GBP/USD pair had hit the level of 1.2427 and reversed sharply lower after the Pin Bar candlestick pattern was made at the top of the rally. The technical resistance is located at 1.2422 and the intraday technical support is seen at 1.2336 and is being testing currently. The momentum on the H4 time frame chart is back below the level of 70, so bulls are temporary in control of the market, but the market conditions are coming off the extremely overbought levels. Please notice, that the mid-term outlook remains bearish due to the Bearish Cross of 50 and 100 DMA on the daily time frame chart, so as long as the level of 1.2466 is not clearly violated, the down trend might be resumed soon.

Weekly Pivot Points:

WR3 - 1.2783

WR2 - 1.2587

WR1 - 1.2483

Weekly Pivot - 1.2287

WS1 - 1.2183

WS2 - 1.1987

WS3 - 1.1883

Trading Outlook:

The weekly time frame chart shows the Bullish Engulfing candlestick pattern was made during the breakout above the level of 1.2340, so the bulls are in charge of the market and they are pushing the price higher. The market already trades above 50 WMA and is heading towards 100 WMA seen at 1.2504. On the other hand, any sustained breakout below the key long term technical support seen at the level of 1.1802 would dramatically increase the chances of another leg down towards the level of 1.1494.