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GBP/USD Looks Set for Further Losses

November 23, 2021

  • GBP/USD tested support near 1.3350 before correcting higher.
  • Bearish trend line broken with resistance near 1.3440.

The British Pound, US Dollar pair turned bearish after testing resistance near 1.3800. The quote is currently trading below both the 100-MA (red) and 200-MA (blue).

 

GBP/USD 4-Hour Chart (Trend: BEARISH)

On the 4-hour chart, the GBP/USD pair dropped to as low as 1.3350 before correcting higher. A bearish trend line was broken near 1.3440 before the quote tested resistance near the 1.3510 level. It has since turned bearish, trading just below the 1.3400 level.

If the pair continues bullish, the quote will first need to break above the 1.3420 resistance level. Above this there is resistance at the 100-MA (red), 200-MA (blue) and the 1.3595 level. This is also close to the 50% Fibonacci retracement level of the downward move from the swing high of 1.3815 to the swing low of 1.3355. If the quote breaks above each of these, there are further resistance levels at 1.3690 and 1.3900.

For the pair to continue bearish, the quote will need to continue trading below the 1.3400 zone. If it can break below the 1.3350 support level, it could open the doors for momentum to take the quote down towards 1.3190, a level last seen in December 2020. 

 

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