Local Support Could Trigger an Upside Rebound as Selling Pressure Weakens

Economic

Central Bank

Summary:

This configuration suggests that bearish momentum may be weakening around the current area, potentially creating room for an upside correction.

BUY GBPUSD

EXP

TRADING

1.32312

Entry Price

1.33610

1.31800

1.32400 +0.00053 +0.04%

0.0

Pips

Flat

1.31800

Exit Price

1.32312

Entry Price

1.33610

U.S. President Donald Trump stated on Thursday that the United States did not need an agreement with Iran, weakening hopes of reaching a deal to bring the conflict to an end. Oil prices surged following the announcement, adding to concerns about inflationary pressures and the potential impact of higher energy costs.

According to a report released by the U.S. Department of Labor (DOL) on Thursday, the number of Americans filing initial jobless claims increased to 200K during the week ending November 7. The latest figure exceeded initial market expectations of 195K and was also higher than the previous week's reading of 191K, which had been revised upward from 189K. Meanwhile, the four-week moving average remained unchanged at 195,250 compared with the revised figure from the previous week.

Cleveland Federal Reserve (Fed) President Beth Hammack acknowledged on Thursday that the central bank is performing well on the employment side of its dual mandate, but admitted that it has been falling short of its inflation objective for several years.

Hammack also noted that recent data indicate inflation is moving in the wrong direction. Despite these concerns, she favored a gradual approach to adjusting interest rates and acknowledged that the Fed needs to raise rates to bring monetary policy into restrictive territory.

The UK's Gross Domestic Product (GDP) expanded by 0.7% in the third quarter, in line with expectations and above the previous reading of 0.5%. Meanwhile, September's monthly growth figure came in at 0.2%, exceeding expectations for no growth. Overall, three of the five UK economic indicators released on Thursday came in above forecasts, while the remaining two matched market expectations. Local Support Could Trigger an Upside Rebound as Selling Pressure Weakens_1

Local Support Could Trigger an Upside Rebound as Selling Pressure Weakens_1

Technical Analysis

GBPUSD has recently experienced a bearish pullback toward the local support level at 1.3225, following a correction from the local high of 1.3504 reached on November 4. If this support holds, the pair could develop an upside correction toward the 0.50 Fibonacci retracement area, which is aligned with a resistance level at 1.3361. Meanwhile, the 100-period and 200-period moving averages are positioned at 1.3375 and 1.3314, respectively, with the 100-period moving average located close to the area of interest. This creates a potential resistance cluster that could become relevant during a recovery.

Looking at the oscillators, the RSI has declined to 24, entering oversold territory and suggesting that buyers could begin to regain control. A hidden divergence can also be identified in comparison with the previous low recorded on October 14, when GBPUSD reached 1.3137. This configuration suggests that bearish momentum may be weakening around the current area, potentially creating room for an upside correction. Meanwhile, the MACD shows a bearish histogram that is losing depth, although its signal lines remain firmly within bearish territory. Therefore, any potential move to the upside should be considered a corrective rebound rather than a confirmed change in the prevailing trend.

Trading Recommendations

Trading direction: Buy

Entry price: 1.3228

Target price: 1.3361

Stop loss: 1.3180

Validity: Nov 25, 2026 15:00:00

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Local Support Could Trigger an Upside Rebound as Selling Pressure Weakens

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