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GBP/USD Daily Forecast – Support At 1.3210 In Sight

By:
Vladimir Zernov
Published: Nov 19, 2020, 06:56 UTC

GBP/USD did not manage to settle above the resistance at 1.3270 and is declining towards the support at 1.3210.

GBP/USD Daily Forecast – Support At 1.3210 In Sight

In this article:

GBP/USD Video 19.11.20.

British Pound Pulls Back

GBP/USD failed to settle above the resistance at 1.3270 and pulled back as the U.S. dollar started to rebound against a broad basket of currencies.

The U.S. Dollar Index did not manage to get to the test of the support level at 92.10 and moved closer to 92.50. If the U.S. Dollar Index manages to settle above this level, it will have a chance to gain upside momentum which will be bearish for GBP/USD.

Yesterday, UK reported that Inflation Rate increased by 0.7% year-over-year in October compared to analyst consensus which called for growth of 0.6%. On a month-over-month basis, Inflation Rate remained unchanged.

Meanwhile, Core Inflation Rate increased by 1.5% year-over-year compared to analyst consensus of 1.3%. Prices showed some strength but it remains to be seen whether this strength will be sustainable in the upcoming months.

EU and UK are getting closer to a deadline for Brexit talks, and foreign exchange market traders will become increasingly sensitive to any news on this front.

The Times has recently reported that Europe’s leaders demanded that the European Commission must publish plans for a no-deal Brexit. This report put some pressure on the British pound although the currency market remains optimistic about a compromise deal between EU and UK.

Technical Analysis

gbp usd november 19 2020

GBP/USD did not manage to settle above the resistance at 1.3270 and pulled back closer to the support at 1.3210.

If GBP/USD gets below the support level at 1.3210, it will gain additional downside momentum and head towards the next support at 1.3180. A move below the support at 1.3180 will push GBP/USD towards the support at the 20 EMA at 1.3150.

On the upside, GBP/USD needs to settle above the resistance at 1.3270 to continue its upside move. The next resistance level for GBP/USD is located at 1.3325. GBP/USD has already made several attempts to get to the test of this level but failed to gain sufficient upside momentum. If GBP/USD settles above 1.3325, it will move towards the next resistance at 1.3400.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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