The British Pound is under downward pressure despite the recovery from the low of 1.3351. At the beginning of the US session, it is trading at 1.3420 below the SMA of 21 and below the 6/8 of Murray.
If in the next few hours GBP/USD consolidates above 1.3422 and above 6/8 of murray there could be a bullish movement. The pair could reach the top of the downtrend channel around 1.3470.
A sharp break above the downtrend channel formed on October 28 could accelerate the upward movement to the 200 EMA located at 1.3621.
Conversely, as long as it trades below 1.3422 (21 SMA), the pound sterling may continue to be under downward pressure and could lose momentum and fall to 5/8 murray around 1.3305.
The US Dollar Index (#USDX) is trading around 95.04. This is an extremely overbought level. We expect that in the next few days, there will be a correction of the dollar which would favor the British pound.
Our forecast in the next few hours for the British pound is to consolidate above 1.3422. As long as GBP/USD is trading above this zone, it will be an opportunity to buy with the target at 1.3470 and if the bearish channel is broken, with targets at 1.3621 (200 EMA).
The market sentiment report for today, November 15, shows that there is 73.10% of operators who are buying the GBP/USD pair. This data provided a negative sign and we could expect a recovery to 1.3620. Then, the price may again resume its downward movement with the target at 1.3305.
Support and Resistance Levels for November 15 - 16, 2021
Resistance (3) 1.3514
Resistance (2) 1.3469
Resistance (1) 1.3441
----------------------------
Support (1) 1.3397
Support (2) 1.3369
Support (3) 1,3308
***********************************************************
A trading tip for GBP/USD for November 15 - 16, 2021
Buy above 1.3422 (6/8) with take profit at 1,3470 (top bearish channel) and 1.3621 (EMA 200) and stop loss below 1.3385.
