GBP/USD technical analysis: cable re-buffed at $1.33, again

GBP/USD has shown a strong move in November but bulls have gotten caught at a key spot of resistance. Can they break through?

GBP/USD talking points:

  • It’s been a strong start to November as GBP/USD has rallied by as much as 3.59%
  • GBP/USD has run into rigid resistance at the $1.33 area which has now held two different inflections – can bulls break through?

GBP/USD bullish trend re-engages with resistance

It’s been a strong month of November so far for the British pound, particularly when viewed against the US dollar as the GBP/USD pair has rallied by as much as 3.59% from the 2 November lows. The psychological level at $1.33 was tested last week; but buyers had little tolerance for momentum above that price and the pair quickly pulled back.

But that pullback was met with a higher low, showing just above the $1.31 level ahead of last week’s close, and buyers have jumped back on the bid this week to pose yet another test of the $1.33 handle. That second test took place yesterday and, again, buyers had little tolerance for bullish momentum above the $1.33 handle, and price action has again pulled back.

The big question at this point is whether this pullback turns into something more; or whether this is just another case of buyers re-loading on the bid before posing a third test of the $1.33 handle.

Find out more about forex trading

GBP/USD eight-hour price chart

Taking a shorter-term look at the matter to focus in on that near-term trend, and there are a couple of points of interest for support potential. The $1.31 level/zone appears an obvious one as this is what helped to hold the pullback last week. Below that area is another big zone with a bit of historical intrigue, and this plots around the $1.30 psychological level up to the $1.3019 Fibonacci level. This could serve as secondary support potential, and if buyers are unable to hold the lows there, the probability of a deeper reversal will look much stronger.

GBP/USD two-hour price chart

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.