GBP/USD: technical analysis 18.11.2019
On the 4-hour chart, the instrument is growing along the upper line of the Bollinger Bands and approaching the strong resistance around the 1.29395 line. Slightly overbought conditions on hourly charts signaling the possibility of a downward correction, but the general upward trend is still maintained. The decisive break of 1.29395 is needed to indicate uptrend resumption. In this case, the buyers will aim for the level of 1.29700-1.30005. This area seems a strong resistance area which can prevent further rise.
The rebound from 1.29395 and price' sustained trading below 1.29089 level will be a signal for downward correction forming and let the price decline to the level of 1.28784. This level is located near the middle line of Bollinger Bands and is the key correction target.
One may speak about downward movement continuation after the price consolidates below it.
In this case, the next targets of sellers will be the level of 1.28479, then 1.28174.
Technical indicators mostly keep a buy signal.
Bollinger Bands are diverging on the background of bullish momentum.
MACD histogram is in the positive zone.
Stochastic is in the overbought zone and is pointed upwards.
Support and resistance
Support levels:1.29089, 1.28784, 1.28479, 1.28174.
Resistance levels: 1.29395, 1.29700, 1.30005.
Short positions can be opened below the level of 1.29089 with the target at around 1.28784 and stop-loss at 1.29189.
Long positions can be opened above the level of 1.29395 with the target at around 1.29700 and stop-loss at 1.29295.