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GBP/USD: technical analysis 18.10.2019

Current trend

The GBP/USD pair begins today’s trading with slight bearish bias. If the current trend maintains, the next targets of sellers will be the level of 1.28174. Assuming the pair’s ability to cross this level, the mark of 1.27755 (the middle line of Bollinger bands) can be reached as key target of correction. The area of 1.27555-1.27487 can activate an upward rebound, while its breakdown would allow the fall to continue. to the area of 1.26953 level, which seem a ley level for the sellers in short term period.
Alternative scenario.
If the instrument cannot consolidate below the level of 1.28174 during short term perod, the price can reverse and retest the resistance level of 1.28904. The upward trend will be restored after the price is set above the level of 1.28904. In this case, the next targets of buyers will be the level of 1.29395.
Technical indicators maintain a sell signal. Bollinger Bands are converginh on the background of bearish momentum. MACD histogram has moved to a decline in positiv zone, forming a weak sell signal. Stochastic is pointed downwards.

Support and resistance

Support levels: 1.28174, 1.27566, 1.26953.
Resistance levels: 1.28904, 1.29395, 1.29885.

Trading recommendations

Short positions can be opened below the level of 1.28100 with the target at around 1.27566, and stop-loss 1.25278.
Long positions can be opened above the level of 1.28904 with the target at around 1.29395 and stop-loss 1.28767.

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