GBP/USD: technical analysis 13.08.2019

GBP/USD: technical analysis 13.08.2019

Current trend

The GBP/USD pair begins today’s trading with slight bearish bias. The price went down below the support level of 1.20850 (Murray [6/8]) and can fall further to the levels of 1.20550-1.20239 (Murray [5/8]). As we can see on the 4H chart, the level of 1.20239 seem a strong support that can activate an upward rebound. Meanwhile, pair’s sustained trading below this level will let the price fall to the area of 1.20000 mark. Alternative scenario. If the “bulls” manage to raise the rate above the level of 1.21000 (the middle line of Bollinger Bands) the correction can continue to the area of 1.21206-1.21460 (Murray [7/8]). Technical indicators reflect the moderate maintenance of the current downward trend. Bollinger Bands are pointed downwards. MACD is slowly growing in the positive zone. Stochastic is pointed downwards.

Support and resistance

Support levels: 1.20550, 1.20239, 1.20000.
Resistance levels: 1.21000,1.21206, 1.21460.

Trading recommendations

Short positions can be opened below the level of 1.20239 with the target at around 1.20000 and stop-loss 1.20318.
Long positions can be opened above the level of 1.21000 with the target at around 1.21206 and stop-loss 1.21068.