Sterling Stays Trapped as Moving Averages Favor the Bears 11/6/2026

GBP/USD Technical Analysis

The GBP/USD pair witnessed limited upside attempts across recent trading sessions, seeking to claw back a portion of the losses sustained in previous sessions. That said, these moves continue to lack sufficient momentum to alter the prevailing negative technical outlook over the short term.

Technical Outlook – 4-Hour Timeframe:

With respect to intraday dynamics, the simple moving averages continue to function as effective dynamic resistance, imposing downward pressure on the price and capping recovery opportunities — a configuration that lends support to the continuation of the prevailing downtrend.

On the flip side, the Relative Strength Index (RSI) is broadcasting renewed negative signals, mirroring the weakness in buying momentum and the gradual return of dominance to the broader downtrend. This dynamic raises the probability of sustained selling pressure across the upcoming sessions.

Compounding this picture, the pair’s inability to breach the key resistance levels reinforces the prospects of a resumption of the downtrend, particularly as trading continues to languish beneath the major resistance zones.

Expected Scenarios:

Bearish (Most Likely) Scenario:

As long as trading remains capped below the 1.3400 resistance ceiling — and more critically below 1.3420 — the downward bias will retain the upper hand, with 1.3345 set as the initial target. A decisive break beneath this level would unlock the path toward further declines targeting 1.3300 as the subsequent level, with losses potentially extending to 1.3270.

Bullish Scenario:

Conversely, a decisive breakout above the 1.3420 resistance would temporarily reignite the uptrend, with 1.3465 emerging as the initial target, followed by 1.3500 as the subsequent level.

Risk Alert: Risk levels remain elevated amid persistent trade frictions and geopolitical tensions — all scenarios should be considered plausible.

Trading CFDs involves risks, and therefore all scenarios may be plausible. The information provided above is not a recommendation to sell or buy but rather an explanatory reading of price movement on the chart.

S1: 1.3345	R1: 1.3425
S2: 1.3300	R2: 1.3465
S3: 1.3265	R3: 1.3500