GBP/USD: technical analysis 17.12.19

Current trend

GBP/USD quotes attempted to decline, but reaching 1.32348 mark moved to an upward correction.
If the "bulls" manage to raise the rate above the level of 1.33057 (the middle line of Bollinger bands), the correction can continue to the area of 1.33355-1.33667. The area of 1.33667 seems a strong resistance area, which can activate a price reverse. Meanwhile, the breakout of this level will be a signal for upward trend resumption and let the price grow to the area of 1.34277.

Alternative scenario

The rebound from 1.33057 and pullback below the support of 1.32446 will give a prospect of decline to 1.32135-1.31836 support. This level will be a “key” for the sellers. There is a chance of an upward rebound, while its breakdown would allow the fall to continue.

Technical indicators

The technical picture is mixed.

Bollinger Bands are pointed upwards., reflecting the maintenance of the upward potential.

MACD volumes are decreasing in the positive zone., forming a weak sell signal.

Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 1.32446, 1.31836, 1.31226.
Resistance levels: 1.33057, 1.33667, 1.34277.

Trading recommendations

Short positions can be opened below the level of 1.32400 with the target at around 1.32135-1.31836 and stop-loss at 1.32588.
Long positions can be opened above the level of 1.33057 with the target at around 1.33355-1.33667 and stop-loss at 1.32853.

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