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GBP/USD: technical analysis 04.12.2019

Current trend

GBP/USD is in the stage of a downward correction after growing to the 1.30107 high, but the general upward trend is still maintained. If the sellers manage to decline the rate below the level of 1.29875 support, the correction can continue to the area of 1.29700. There is a high chance of an upward rebound, while its breakdown would allow the fall to continue to 1.29395 mark, which is the key target of the downward correction.

Alternative scenario

The pullback above 1.30000 resistance and pair’s sustained trading above will fuel the upward trajectory and let the price grow to the next high surrounding 1.30310.

Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term.
Bollinger Bands are pointed upwards.
The volumes of MACD histograms are growing in a positive zone.
Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 1.29875, 1.29700, 1.29395.
Resistance levels: 1.30005, 1.30310, 1.30615.

Trading recommendations

Short positions can be opened below the level of 1.29875 with the target at around 1.29700-1.29600 and stop-loss at 1.29966.
Long positions can be opened above the level of 1.30085 with the target at around 1.30310 and stop-loss at 1.30010.

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