Intraday technical levels and trading recommendations for GBP/USD for November 7, 2018

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Since September 13, the GBP/USD pair has been demonstrating a successful bullish breakout above the depicted daily downtrend line which came to meet the pair around 1.3025-1.3090.

On September 21, the GBP/USD pair failed to demonstrate sufficient bullish momentum above 1.3296. The short-term outlook turned to become bearish within the depicted H4 bearish channel to test the backside of the broken uptrend.

Bearish persistence below the price level of 1.2970 (50% Fibo level) enhanced further bearish decline towards 1.2790 then 1.2700 where the lower limit of the movement channel and 79.8% Fibonacci Level were located.

On H4 chart, the GBP/USD pair looked oversold around the price levels of 1.2700. BUY entries were suggested around the lower limit of the depicted H4 channel (1.2700).

As for the bullish DAILY breakout scenario to remain valid, quick bullish breakout above 1.3000 (50% Fibo level) was achieved by the end of last week's consolidations.

Bullish persistence above the price zone of 1.2970-1.3000 (50% Fibonacci zone) allows more bullish advancement towards the price level of 1.3200 where the depicted downtrend comes to meet the GBP/USD pair.

On the other hand, currently, the price zone of (1.2980-1.3025) now constitutes a prominent demand zone to be watched for bullish positions if any bearish pullback occurs soon.

Trade Recommendations:

Conservative traders should wait for bearish pullback towards the price zone of 1.2980-1.3025 for a low-risk BUY entry.

T/P levels to be located around 1.3130 and 1.3200. S/L should be set as daily candlestick closure below 1.2950.

The material has been provided by InstaForex Company - www.instaforex.com