GBP/USD: technical analysis 12.02.2019
On 4-hour chart, the instrument is correcting up from the lower line of the Bollinger Bands (1.2846), but the bearish trend still maintains. If the “bulls” manage to raise the rate above the level of 1.2878 (Murray [3/8]), the correction can continue to the area of 1.2920 – 1.2939, which coincided the middle line of Bollinger Bands. Failure to conquer the 1.2878 mark seems fetching the GBP/USD to 1.2817 (Murray [2/8]) support level, but its further downside might be confined by the 1.2756 (Murray [1/8])-1.2695 (Murray [0/8]) support zone.
Technical indicators mostly reflect the maintenance of the downward potential. Bollinger Bands are directed down. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Meanwhile, Stochastic is in the oversold zone and is pointed upwards, reflecting the high possibility of the upward correction formation.
Support and resistance
Support levels: 1.2817, 1.2756, 1.2695.
Resistance levels: 1.2878, 1.2939, 1.3000.
Short positions can be opened below the level of 1.2817 with the target at around 1.2756 and stop-loss 1.2835.
Long positions can be opened above the level of 1.2878 with the target at around 1.2939 and stop-loss 1.2850.