Signs of Recovery or Resistance Ahead?

11월 19일

Currently, GBP/USD is trading around 1.26857, indicating a slight recovery after the previous extended bearish phase. The British pound is showing more positive signs, however, the pressure from the EMA 89 resistance has not been completely broken.

The GBP/USD pair remains in an overall downtrend, confirmed by lower highs and lows.

The EMA 34 and EMA 89 continue to slope down, indicating that selling pressure is still dominant.

Resistance and support:
Nearest resistance: The area around 1.2700-1.2720, which coincides with the EMA 89. This is an important zone that needs to be broken to confirm a short-term reversal.
Key support: The 1.2600 area, where the pair has found buying pressure in recent sessions. If this zone is broken, GBP/USD could fall further to 1.2540.

Personal view:
I expect GBP/USD to continue its slight recovery in the short term to test the resistance zone of 1.2700-1.2720. If it fails to break, the price will reverse and retest the support at 1.2600. However, if there is a strong news factor supporting the pound, the pair could break above the 89 EMA and open the door for further gains.