After falling to price levels of December 21, 2020 around 1.3277, GBP/USD has managed to gain momentum and has started to rebound towards the 21 SMA located at 1.3343. This technical correction is observed in all crosses against the dollar, because the USDX in the last hours is falling below 8/8 of a murray.

Parallel to the main downtrend channel, a second channel was formed. A sharp break above this channel and above the 21 SMA will be a clear signal to buy the GBP / USD pair with targets at 1.3427 and up to the 200 EMA at 1.3530.

The key level to watch in the next few hours is the level of the 21 SMA located at 1.3343. If GBP/USD manages to settle above this level, we can expect a bullish move to the 200 EMA located at 1.3530.

Support to the downside is located at 1.3305, around the zone of 5/8 murray. At this level, a technical rebound is expected. If the pound sterling falls towards these levels, it could enter into a strong oversold stage because this support coincides with the bottom of the downtrend channel formed since October 28.

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.

As GBP/USD is above the 21 SMA located at 1.3343, 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.

Support and Resistance Levels for November 26 - 29, 2021

Resistance (3) 1.3391

Resistance (2) 1.3372

Resistance (1) 1.3343

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Support (1) 1.3305

Support (2) 1.3275

Support (3) 1.3246

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A trading tip for GBP/USD November 26 - 29, 2021

Buy above 1.3343 (21 SMA ) with take profit at 13427 (6/8) and 1.3530 (200 EMA), stop loss below 1.3305.