Forecast of GBP/USD for November 16, 2020: 1.3170 and 1.3140 are key levels to trade according to the trend

This week, the talks on Brexit is due to continue , which may be decisive for the British pound. The news could be that the pound could rise and decline quickly, if the data is not favorable. So be ready for higher volatility.

It is essential to remember that both sides have agreed an expiration date on December 31, when the transition period ends. Until then, the pound will be very sensitive to any news about Brexit.

At the technical analysis level, we note that the pound is above the pivot point of 4/8, while it remains above the 1.3168 level, there is a possibility that it will rise to 1.3278, a resistance zone. The target in the medium term is seen at 1.3384.

In the 1-hour chart. we note that the pair is being supported by the 200 EMA. The chart can be seen in our previous analysis. This level is the key if the pair breaks below and makes a pullback, we would expect a fall to the EMA 200 H4, located at 1.3011.

According to market sentiment, there are 62% of traders and companies that are selling the pound, which means that this pair can continue to rise to 1.3380 as a short-term objective.

Our recommendation is to buy above 1.3170 and sell below 1.3135. These are the key zones to trade according to the trend.

Our Forecast for November 16:

Sell bellow 1.3135 with take profit in 1.3065 and 1.3011. Stop loss is above 1.3170.

Buy above 1.3180 and 1.3200 with target 1.3305 and 1.3340. Stop loss could be set below 1.3140

Our support and resistance levels for November 16

Resistance (1) 1.3228

Support (1) 1.3138

Resistance (2) 1.3259

Support (2) 1.3077

Resistance (3) 1.3319

Support (3) 1.3047

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