Forecast of GBP/USD for 20 November

GBP/USD lacks a clear directional bias with prices trapped in the range. A close below 1.32 would imply a reversal lower.

GBP/USD is currently trading at near 1.328, having been rejected off 1.33 twice in the past seven trading days. GBP/USD looks to extend its bounce towards 1.3300 ahead of publication of the UK Retail Sales data. The annualized British spending is seen higher by 4.2% in October vs. 4.7% in the previous month.

However, bulls can capitalize on the move or the GBP/USD pair struggles to climb back above the 1.3300 mark as investors await Brexit-related news. This makes it prudent to wait for some strong follow-through buying before traders start positioning for any further near-term appreciating move, possibly towards mid-1.3300s.

Alternatively, a close below 1.32 would open the door to deeper declines. The immediate support is located at 1.310 (Nov. 13 low) followed by the Nov. 2 low of 1.2850.