21.11.201613:11 Forex Analysis & Reviews: Technical analysis of GBP/USD for November 13, 2016

Overview:

• The market opened below the weekly resistance 2 (1.2610). The GBP/USD pair continued to move downwards from the level of 1.2560 to the bottom around 1.2471. Today, the first resistance level is seen at 1.2560 followed by 1.2610, while daily support 1 is set at 1.2470. The GBP/USD pair broke support which turned to strong resistance at 1.2560. Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains below the support (1.2470) which is expected to act as major support today. This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment. Amid the previous events, the GBP/USD pair is still moving between the levels of 1.2560 and 1.2408. Therefore, the major resistance can be found at 1.2560 providing a clear signal to sell with a target seen at 1.2470. If the trend breaks the minor support at 1.2470, the pair will move downwards continuing the bearish trend development to the level of 1.2408 in order to test the daily support 2. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 1.2560 and 1.2610 this week. However, if a breakout happens at the resistance level of 1.2610, then this scenario may be invalidated.