In the early North American session, GBP/USD is trading above the 21-day EMA in 4-hour chart. This is a congestion zone since if it remains above this level, so the pair could continue its uptrend.
The Brexit talks remain unresolved on three main issues. It’s about fisheries, governance and a level playing field, this keeps the pair on the lookout and is likely to continue to consolidate.
However, it will be prudent to wait for a very strong move above the 1.3305 region of 5/8 murray zone (green line) before positioning for any further bullish movement in the short term.
A convincing breakout of this level will be seen as a new trigger to buy and will set the stage for a bullish move towards the daily highs of 1.3427 6/8 Murray resistance level (Red line).
On the other hand, if the pair retraces below the EMA of 21, the immediate support is near the region of 1.3181, zone of 4/8 of Murray, this level is important to maintain the uptrend of the British pound, If it loses this level, the pound can accelerate the fall to the 200-day EMA at 1.3061.
The eagle indicator below a downtrend line means that the market is likely to try to break, but the underlying force is still bearish.
Market sentiment has varied, there are 60% of investors with short positions. We see that more buyers enter the market that is in line with the eagle indicator. The currency pair is likely to fall to the 1.30 zone in the coming days.
Our recommendation is to sell below 1.3240, with long-term targets up to 1.3060, and buy only if it exceeds 1.3305 with targets at 1.3427.
Trading tip for GBP/USD for November 20 – 23:
Sell below 1.3245 (break out bellow EMA21) with take profit at 1.3185 and stop loss above 1.3280
Sell if the pair breaks below 1.3183 with take profit at 1.3061 (3/8 murray) and stop loss above 1.3245.
Buy if the pair rebounds to 1.3180 (4/8 murray) with take profit at 1.3240 and stop loss 1.3150
Buy with a convincing break above 1.3302 with take profit at 1.3427 and stop loss below 1.3270.
The material has been provided by InstaForex Company – www.instaforex.com
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