GBPUSD May Extend Its Decline in the Near Term to the 1.3200 Level Amid Brexit Tensions

GBPUSD Price Analysis – November 29

GBPUSD plunged beneath the mid 1.3300 level in the prior session around which it closed. The pair lost upside momentum towards the end of the week as Brexit pessimism and tension contributed to its woes. The lack of progress in talks has hurt demand for sterling.

Key Levels
Resistance Levels: 1.3514, 1.3400, 1.3350
Support Levels: 1.3260, 1.3106, 1.2881
GBPUSD Long term Trend: Ranging
GBPUSD has lost its bullish traction around 1.3400 but is still far from bearish. On the daily chart, the pair continues to advance above the bullish moving average of 13, which provides weak support at 1.3260, while technical indicators such as the RSI are declining within positive levels and may decline to 1.3200 level.

In a broader context, the target remains at the key resistance level of 1.3514. A sustained breakout at this point should also be accompanied by continued trading beyond the 5 moving average, which is currently at 1.3350. This should confirm the mid-term bottom at 1.1409. Nonetheless, a deviation at 1.3514 would maintain medium-term bearish sentiment for another decline below 1.1409 at a later stage.
GBPUSD Short term Trend: Ranging
GBPUSD’s rise from 1.2675 continued to 1.3397 in the previous week but retreated. The initial bias is neutral this week. On the other hand, after the 1.3400 resistance level, the pair could target the 1.3514 high. A decisive breach of the 1.3514 upper level would restart the general rally from 1.1409.

However, a further rally to the 61.8% forecast from 1.1409 to 1.3514 levels should then be seen from 1.2675 at the next 1.3957 levels. On the other hand, a break of key 1.3177 support could reverse the upward bias back to the downside to widen the range from 1.3514 with another cycle of decline.

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