GBP/USD: technical analysis 21.08.2019
GBP/USD is in the stage of downward correction after raising to the level of 1.21794. The first target of the correction is the level of 1.21345, which corresponds to the middle line of Bollinger Bands. Meanwhile the support level 1.21460 (Murray [6/8]) might offer intermediate halt during the plunge to corections’ target. The downward trend will be restored after the price is set below the level of 1.21345. In this case, the next targets of sellers will be the level of 1.21155 (Murray [5/8]). Alternative scenario. If the “bulls” manage to raise the rate above the level of 1.21794, the upward dynamic can continue to the area of 1.21906, 1.22070 (Murray [8/8]). The mark of 1.22070 seem a key level for the buyers in short term period where is a high probability of a course reversal. Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term. Bollinger Bands are pointed upwards. The volumes of MACD histogram are growing in the positive zone. Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.
Support and resistance
Support levels: 1.21460, 1.21345, 1.21155.
Resistance levels: 1.21765, 1.21906, 1.22070.
Short positions can be opened below the level of 1.21460 with the target at around 1.21345 and stop-loss 1.21498.
Long positions can be opened above the level of 1.21794 with the target at around 1.21906 and stop-loss 1.21756.