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GBP/USD: TECHNICAL ANALYSIS 23.10.2019

Current trend

On 4-hour chart, the instrument shows a negative dynamic. If the current trend maintains, GPP/USD will reach 1.28174 support line. There is a chance of an upward rebound, while its breakdown would indicate the downtrend resumption. In this case, the next targets of sellers will be the level of 1.27869. We notice, slightly overbought Stochastic on H1 chars reflecting the possibility of the upward correction formation.

Alternative scenario.
If the "bulls" manage to raise the rate above the level of 1.28722, the correction can continue to the area of 1.29190, which coincided with the middle line of Bollinger Bands. The level of 1.29190 seem a key bullish level for the short term period. The breakout of this level will let the price to grow to the area of 1.29395-1.29860. Technical indicators maintain a sell signal. Bollinger Bands are converging on the background of bearish momentum. MACD histogram has moved to a decline in positive zone. Stochastic is in the overbought zone and is pointed sideways.

Support and resistance

Support levels: 1.28174, 1.27869, 1.27566.
Resistance levels: 1.28722, 1.29190, 1.29395.

Trading recommendations

Short positions can be opened below the level of 1.28174 with the target at around 1.27869, and stop-loss 1.28275.
Long positions can be opened above the level of 1.28722 with the target at around 1.29190 and stop-loss 1.28566.

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