GBP/USD: technical analysis 01.10.2019
On 4-hour chart, the instrument is slightly correcting up from the lower line of the Bollinger Bands, but the general downward trend is still maintained. If the "bulls" manage to raise the rate above the level of 1.22986 (Murray [-1/8]), the correction can continue to the area of 1.23124, which coincided with the middle line of Bollinger Bands. The level of 1.23124 seem a key target for the buyers in short term period. The breakout and consolidation above it will give the prospect of growth to the levels of 1.23291 (Murray [0/8]). The downward trend will be restored after the price is set below the level of 1.22681 (Murray [-2/8]). In this case, the next key targets of sellers will be the level of 1.22328.
Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term. Bollinger Bands are pointed downwards. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is in the oversold area and is pointed upwards, reflecting the high possibility of the upward movement formation.
Support and resistance
Support levels: 1.22681, 1.22500, 1.22328.
Resistance levels: 1.22986, 1.23124, 1.23291.
Short positions can be opened below the level of 1.22681 with the target at around 1.22500-1.22328 and stop-loss 1.22798.
Long positions can be opened above the level of 1.22986 with the target at around 1.23124-1.23291 and stop-loss 1.22884.