The British pound (GBP / USD) is trading under strong bearish pressure. Since the European session, it is consolidating below the SMA of 21 located at 1.3461. As long as GBP/USD remains below this level, the pound is expected to fall to the support of the downtrend channel around 1.3370.
The key level is 1.3461. A consolidation above this zone could be favorable for the pound and we could see a recovery to 7/8 murray around 1.3549.
The main trend according to the daily chart is bearish. As long as GBP/USD remains below the 200 EMA located at 1.3576, any correction will be an opportunity to continue selling the currency pair.
For other hand, you can buy as long as the pound is trading above 1.3461 with the targets at 1.3549 and up to 1.3576 (EMA 200).
The market sentiment report for today, November 2, shows that there is 70.03% of operators who are buying the GBP/USD pair. This data provided a negative sign and we could expect a recovery to 1.3576. Then, the price may again resume its downward movement with the target at 1.3183 (5/8).
Our trading plan is to buy above 1.3461 with the targets at 1.3549 and up to 1.3589, a rebound around the bottom of bearish channel located at 1.33370 will be a signal to buy the pound again with targets at EMA 200.
Support and Resistance Levels for November 22 - 23, 2021
Resistance (3) 1.3549
Resistance (2) 1.3499
Resistance (1) 1.3450
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Support (1) 1.3396
Support (2) 1.3349
Support (3) 1.3305
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A trading tip for GBP/USD for November 22 - 23, 2021
Buy if rebound around 1.3370 (bearish trend line) with take profit at 1.3427 (6/8) and 1.3461 (21 SMA), stop loss below 1.3330.
Buy if breaks above 1.3461 (21 SMA) with take profit at 1.3549 (7/8) and 1.3576 (200 EMA), stop loss below 1.3420.
