GBP/USD: technical analysis 09.04.20

Current trend

GBP/USD quotes attempted to grow, but reaching 1.24180 mark moved to a downward correction. Now the pair is testing the 1.23850 support after the breakdown of which, the plunge may continue to the area of 1.23596 support-line. In case the pair manage to cross this line, the level of 1.23291 will be the next key target of the correction movement.

Alternative scenario

One may speak about upward movement continuation after the price consolidates above the resistance level of 1.24180. In this case, the buyers will aim for the level of 1.24512 resistance. The area of 1.24512-1.24846 seems a strong resistance area, which can activate a downward reverse of the price. However, the breakout of the upper border could trigger a pair’s fresh run-up to a one-month high surrounding 1.25732.

Technical indicators

Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term.

Bollinger Bands are diverging on the background of bullish momentum.

MACD is growing in a positive zone.

Stochastic is preparing to exit the overbought zone and is directed downwards, signaling the development of a downward correction.

Support and resistance

Support levels: 1.23850, 1.23596, 1.23291, 1.23000.
Resistance levels: 1.24180, 1.24512, 1.24846, 1.25200, 1.25700.

Trading recommendations

Short positions can be opened below the level of 1.23850 with the target at around 1.23596 and stop-loss at 1.23934.
Long positions can be opened above the level of 1.24180 with the target at around 1.24512 and stop-loss at 1.24069.

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