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GBP/USD: technical analysis 09.01.20

Current trend

GBP/USD is in the stage of upward correction after falling to the level of 1.30821, but the general downward trend is still maintained. The first target of the correction is the level of 1.31226, which corresponds to the middle line of Bollinger Bands. There is a high chance of a downward rebound, while its breakout will be a signal for upward trend resumption and let the price grow to the area of 1.31378-1.31531 resistance.

Alternative scenario

The downward rebound from 1.31226 resistance and pullback below 1.30821 will lead the price to 1.30615 support. The decisive breakdown of this level is needed to indicate the downward trend resumption. In this case, the next targets of sellers will be the level of 1.30310-1.30005.

Technical indicators

The technical picture is mixed.
Bollinger Bands are pointed sideways.
MACD histogram has moved to a decline, forming a weak sell signal.
Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 1.30821, 1.30615, 1.30310, 1.30005.
Resistance levels: 1.31226, 1.31378, 1.31531.

Trading recommendations

Short positions can be opened below the level of 1.30615 with the target at around 1.30310 and stop-loss at 1.30715.
Long positions can be opened above the level of 1.31226 with the target at around 1.31531 and stop-loss at 1.31126.

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