GBP/USD: technical analysis 08.10.2019
The GBPUSD pair begins today’s trading with slight bullish bias due to upward correction, but the general downward trend is still maintained. If the "bulls" manage to raise the rate above the level of 1.22998, the correction can continue to the area of 1.23213, which is the key target of upward correction. The area of 1.23213-1.23291 seem a strong resistance which can prevent the instrument from growing, as the possibility of the reverse of the price is high there. Meanwhile, the breakout and pair’s sustained trading beyond the 1.23291 mark will indicate up trend resumption. In this case the buyers will have its sights on resistance at 1.23596 (Murray [5/8]).
If GBP/USD cannot consolidate above the level of 1.22998 during short term period, the downward movement restoration and retest of the level 1.22833 are possible. A significant decrease is possible after the breakout of the level 1.22681 (Murray [2/8]), which can develop to the level of 1.22375 (Murray [1/8]). Technical indicators reflect the maintenance of the downward potential. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is in the oversold zone and is pointed downwards, reflecting the high possibility of the downward movement formation. Bollinger Bands are pointed sideways.
Support and resistance
Support levels: 1.22833, 1.22681, 1.22375.
Resistance levels: 1.22998, 1.23291, 1.23596.
Short positions can be opened below the level of 1.22681 with the target at around 1.22375 and stop-loss 1.22781.
Long positions can be opened above the level of 1.22998 with the target at around 1.23291 and stop-loss 1.22900.