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GBP/USD: technical analysis 14.01.20

Current trend

GBP/USD is in the stage of upward correction after falling to the level of 1.29603, but the downward trend is still maintained. At the moment the price has met the resistance at the level of 1.30018. This level can prevent the instrument from growing, as the possibility of the reverse of the price is high there. However, the breakout of 1.30310 resistance will give a prospect of growth to the 1.30615 level.

Alternative scenario

The downward rebound from 1.30005 and pullback below 1.29814 support could lead the price back to 1.29603 support. In case the pair manage to cross this mark, the level of 1.29395 will be the next support level. There is a chance of an upward rebound, while its breakdown would allow the fall to continue to the 3-week lows surrounding 1.29045.

Technical indicators

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

Bollinger Bands are pointed downwards.

MACD volumes are in the negative zone and are moving along the zero line.

Stochastic is pointed upwards, reflecting the high possibility of the upward movement formation.1.

Support and resistance

Support levels: 1.29814, 1.29603, 1.29395, 1.29045.
Resistance levels: 1.30018, 1.30310, 1.30615.

Trading recommendations

Short positions can be opened below the level of 1.29814 with the target at around 1.29603 and stop-loss at 1.29884.
Long positions can be opened above the level of 1.30018 with the target at around 1.30310 and stop-loss at 1.29920.

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