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GBP/USD: TECHNICAL ANALYSIS 05.11.2019

Current trend

On the 4-hour chart, the instrument keeps a negative dynamic. The instrument is now testing the support level of 1.28784. Assuming the pair’s ability to cross this hurdle, the marks of 1.28479 can be targeted if holding short positions.

Alternative scenario.
The rebound from the level of 1.28757 and the pair’s sustained move above 1.28898 will be a signal for an upward correction. In this case, the growth can continue to the area of 1.29089 - 1.29258. The area of 1.29258-1.29395 will be a key target of correction move. There is a chance of a downward rebound, while a breakout of 1.29395 will indicate the upward trend resumption and give the prospect of growth to the level of 1.29700.

Technical indicators reflect the moderate maintenance of the current downward trend. Bollinger Bands are diverging on the background of bearish momentum. MACD histogram is ready to enter the negative zone and form a sell signal. Stochastic is in the oversold zone and is pointed sideways.

Support and resistance

Support levels: 1.28784, 1.28479, 1.28174.
Resistance levels: 1.28898, 1.29258, 1.29700.

Trading recommendations

Short positions can be opened below the level of 1.28784 with the target at around 1.28479 and stop-loss 1.28885.
Long positions can be opened above the level of 1.28900 with the target at around 1.29258 and stop-loss 1.28780.

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