GBP/USD: technical analysis 14.03.2019

GBP/USD: technical analysis 14.03.2019

Current trend

On the 4-hour chart, the instrument is correcting down from the resistance level 1.3380. The main target of the correction is the level of 1.3138, which corresponds to the middle line of Bollinger Bands. The levels of 1.3244 (Murray [5/8]) and the 1.3183 (Murray [4/8]) levels might offer intermediate halts during the plunge to the level 1.3138. There is a chance of an upward rebound from the level 1.3138, while its breakdown would allow the fall to continue. Alternatively, break of 1.3380 can accelerate the pair towards 1.3427 (Murray [8/8]) – 1.3488 (Murray [+1/8]). Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term. MACD volumes are in the positive zone. Bollinger Bands are directed up.Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 1.3244, 1.3183, 1.3122, 1.3061.
Resistance levels: 1.3305, 1.3366, 1.3427, 1.3488.

Trading recommendations

Short positions can be opened below the level of 1.3244 with the target at around 1.3183 and stop-loss 1.3260.
Long positions can be opened above the level of 1.3305 with the target at around 1.3366 and stop-loss 1.2805.