GBP / USD lacks bullish strength. It made an attempt to break the strong downtrend channel, but failed. At the moment GBP/USD is trading at 1.3326 and could continue its bearish trend until it finds a bottom at 1.3305.
The British pound is trading below the strong downtrend channel formed since October 28 and below the 21 SMA located at 1.3331. In the next few hours, a technical rebound is expected around 5/8 murray located at 1.3305.
Global risk sentiment faces uncertainty, as investors prefer to wait and see if the new variant of the Omicron coronavirus could eventually affect the economic recovery.
As GBP/USD is above the 21 SMA located at 1.3331, we have a good opportunity to buy in the next few hours. On the contrary, if the pound remains below this level, we should expect a technical rebound around 1.3305 and 1.3276.
Our forecast in the next few hours for the British pound is a consolidation above 1.3305. As long as GBP/ USD is trading above this zone, we will have an opportunity to buy with the target at 1.3427. If 6/8 is broken, we could buy with targets at 1.3518 (200 EMA).
The market sentiment report for today, November 29, shows that there are 75.82% of operators who are buying the GBP/ USD pair. This data provided a bearish sign in the short-term (It is bearish because investors act against the trend). Therefore, the price may again resume its downward movement with the target at 1.3183. The confirmation will happen if it consolidates below 1.3300.
The eagle indicator is showing a bullish bias, moving above a trend channel. A recovery is likely to follow in the coming days as long as the pair remains above 1.3305.
Support and Resistance Levels for November 29 - 30, 2021
Resistance (3) 1.3408
Resistance (2) 1.3371
Resistance (1) 1.3324
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Support (1) 1.3287
Support (2) 1.3254
Support (3) 1.3203
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A trading tip for GBP/USD November 29 - 30, 2021
Buy above 1.3331 (SMA 21) with take profit at 1.342 (6/8) and 1.3518 (200 EMA), stop loss below 1.3290.
The material has been provided by InstaForex Company - www.instaforex.com