GBPUSD Selling Bias Holds Lower Under the 1.3000 Level As UK Nationwide Lockdown Goes Into Force

GBPUSD Selling Bias Holds Lower Under the 1.3000 Level As UK Nationwide Lockdown Goes Into Force

GBPUSD Price Analysis – November 1

The GBPUSD pair posted a modest intraday advance in the prior session but selling bias holds lower under the 1.3000 level. Prime Minister Boris Johnson announced a UK nationwide lockdown on Saturday, also extending coronavirus wage subsidies. GBPUSD may trend lower at the weekly opening and lose the 1.2881 level.

Key Levels
Resistance Levels: 1.3356, 1.3190, 1.3007
Support Levels: 1.2881, 1.2675, 1.2252
GBPUSD Long term Trend: Ranging
GBPUSD started a deep fall after a pullback at 1.3177 resistance, causing the pair to dip below the 5 and 13 moving averages to retrace at 1.2881. From a technical point of view, the RSI is holding in negative territory. The continued decline could open the door to support at 1.2813.

In a broader context, attention remains at the key resistance level of 1.3482. A decisive breakout in this area should also occur with sustained trading above the horizontal resistance level, which is currently at 1.3356. This should confirm the mid- to long-term bottom at 1.1409. Nonetheless, a deviation at 1.3482 would maintain bearish sentiment for another decline below 1.1409 in a later cycle.
GBPUSD Short term Trend: Ranging
GBPUSD dropped to 1.2881 last week but recovered quickly. Initial bias remains neutral this week. On the other hand, a break of 1.2881 should turn intraday bias downward to retest the 1.2675 low as well as the 38.2% retracement from 1.1409 to 1.3482 at 1.2750 levels.

On the other hand, however, a break of 1.3190 will resume the rebound from 1.2675 to retest the 1.3482 high. In the 4 hours chart, the risk is shifting to the downside as the pair meets sellers near the bearish 5 and 13 moving average, which continues to fall below the uptrend line. The weekly low at 1.2881 is the closest support level.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.