FX.co ★ Technical Analysis of GBP/USD for November 23, 2023

Technical Market Outlook:

The GBP/USD pair has terminated the pull-back at the level of 1.2448 and bounced higher to test the intraday technical resistance located at 1.2516. In a case of a breakout higher, the next target for bulls is swing high seen at the level of 1.2558 and the trigger for the up move might be better than expected UK PMI data release. The strong and positive momentum on the H4 time frame chart support the bullish outlook for GBP in the short-term. The key technical support is still seen at the level of 1.2373.

Weekly Pivot Points:

WR3 - 1.2868

WR2 - 1.2687

WR1 - 1.2575

Weekly Pivot - 1.2394

WS1 - 1.2282

WS2 - 1.2101

WS3 - 1.1989

Trading Outlook:

The weekly time frame chart reveals a decisive Bullish Engulfing candlestick pattern materializing amid the breakout beyond the 1.2340 level, signaling the dominance of bullish sentiment as prices continue to climb. Currently, the market is trading above the 50-week moving average (WMA) and is on course towards the 100 WMA positioned at 1.2504. Conversely, a sustained breakout below the critical long-term technical support at 1.1802 significantly heightens the probability of a substantial downward movement, potentially targeting the level of 1.1494.