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GBP/USD: technical analysis 04.10.2019

Current trend

GBP/USD is in the stage of downward correction. At the moment the price has met the support at the level of 1.23291 (Murray [2/8]). If the sellers manage to decline the rate below this level, the correction can continue to the area of 1.23000, which coincided with the middle line of Bollinger Bands. There is a chance of an upward rebound, while its breakdown would allow the fall to continue to the area of 1.22681 (Murray [1/8]). Alternative scenario. If the instrument cannot consolidate below the level of 1.23291 during short term period, the upward movement to the area of the level of 1.23596 is possible. The upward trend will be restored after the price is set above the level of 1.23596. In this case, the next targets of buyers will be the resistance level of 1.23901 (Murray [3/8]). The technical picture is mixed. Bollinger Bands are pointed upwards. The volumes of MACD histogram are slowly growing in the positive zone. Stochastic is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 1.23291, 1.23000, 1.22681.
Resistance levels: 1.23596, 1.23901, 1.24127.

Trading recommendations

Short positions can be opened below the level of 1.23291 with the target at around 1.23000 and stop-loss 1.23388.
Long positions can be opened above the level of 1.23596 with the target at around 1.23901 and stop-loss 1.23494.

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