November 30, 2023

Hovers below key hurdle to the north, 1.3610 in focus

  • GBP/USD prices remains lackluster after positing the biggest daily jump in a week.
  • A clear upside break of 100-DMA joins bullish MACD signals, three-week-old support line to keep buyers hopeful.
  • Horizontal area from August 20 precedes 61.8% Fibonacci retracement level to challenge bulls.

GBP/USD struggles to extend the previous day’s recovery moves near 1.3585 heading into Monday’s London open. In doing so, the cable pair seesaws below a horizontal resistance region established from August 20.

However, a clear upside break of the 100-DMA and a three-week-long uptrend, portrayed by the short-term support line, join the bullish MACD signals to favor buyers battling the 1.3600-3610 resistance zone.

It’s worth noting that the 61.8% Fibonacci retracement level of September-December downside, near 1.3625, adds to the upside filters before fueling the GBP/USD prices towards November’s peak near 1.3700.

Following that, the 200-DMA level surrounding 1.3740 will challenge the pair buyers afterward.

On the contrary, a convergence of the 100-DMA and aforementioned support line restricts short-term declines of the GBP/USD pair near 1.3555-3550.

Even if the cable pair drops below 1.3550, November 18 swing high and 38.2% Fibonacci retracement level, close to 1.3515 and 1.3450 in that order, will challenge the pair sellers.

GBP/USD: Daily chart

Trend: Further upside expected


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