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GBP/USD Daily Forecast – Test Of Support At 1.3310

By:
Vladimir Zernov
Published: Nov 26, 2021, 07:35 UTC

GBP/USD remains under pressure ahead of the weekend.

GBP/USD

In this article:

British Pound Is Losing Ground Against U.S. Dollar

GBP/USD is currently trying to settle below the support level at 1.3310 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index has managed to get below the support level at 96.70 and is moving towards the next support at 96.50. In case the U.S. Dollar Index declines below 96.50, it will gain additional downside momentum and head towards the support at 96.25 which will be bullish for GBP/USD.

There are no important economic reports scheduled to be released in the U.S. and UK today so foreign exchange market traders will focus on the recent developments on the coronavirus front.

A new variant has been detected in South Africa, and Britain has already banned flights from six countries in the region. This variant has more mutations and may make current vaccines less effective.

The news has already put significant pressure on the world markets. Traders rushed to safe-haven assets like U.S. Treasuries, pushing their yields lower. Interestingly, the safe-haven U.S. dollar is currently moving lower against a broad basket of currencies, although the situation may change quickly.

Technical Analysis

gbp usd november 26 2021

GBP/USD managed to settle below the support at 1.3350 and is testing the next support level at 1.3310. In case this test is successful, GBP/USD will move towards the next support level at 1.3280.

A move below the support at 1.3280 will open the way to the test of the support at 1.3250. If GBP/USD manages to settle below this level, it will head towards the next support level which is located at 1.3230.

On the upside, a move above 1.3310 will push GBP/USD towards the resistance level at 1.3350. In case GBP/USD manages to get back above the resistance at 1.3350, it will gain additional upside momentum and head towards the resistance level at 1.3375. A successful test of this level will open the way to the test of the 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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