GBP/USD

The GBP/USD fell this morning to 1.3235. The British Pound moved higher on Wednesday, in a steady climb all day. The UK’s CPI for October was 0.05, Month-over-Month, and 0.7%, Year-over-Year. In the United States housing data was mixed. Building Permits for October came in just under their forecast at 1.545 million while Housing Starts for October beat their estimate printing at 1.530 million. There is still no official news about a UK-EU post-Brexit trade agreement but the rumor mill says that a deal is imminent.

From a technical perspective, the formation of an ascending trend-channel on short-term charts points to a well-established bullish trend and supports prospects for the emergence of some dip-buying. That said, sustained weakness below the 1.3200 level might prompt some technical selling. The pair might then accelerate the fall towards the 1.3165-60 intermediate support before eventually dropping to the 1.3100 neighbourhood.

On the flip side, the 1.3275 level now seems to act as immediate resistance and is closely followed by the 1.3300 mark. Some follow-through buying, leading to a subsequent move beyond the 1.3315 region has the potential to push the pair further towards challenging the trend-channel resistance, currently around the 1.3345 region. Some follow-through buying will be seen as a fresh trigger for bullish traders and pave the way for a further near-term appreciating move.

GBPUSD Support & Resistance Table – 19/11/2020