GBP/USD: technical analysis 26.11.2019

Current trend

GBP/USD is in the stage of a slight downward correction after rising to the level of 1.29114. If the sellers manage to decline the rate below the level of 1.28900 ( middle line of Bollinger bands), the correction can continue to the area of 1.28784-1.28670. One may speak about downward movement continuation after the price consolidates below the level of 1.28650. In this case, the next targets of sellers will be the level of 1.28479 support.

Alternative scenario

The rebound from 1.28900 could lead the price back to 1.29114 resistance. The upward trend will be restored after the price is set above this level. In this case, the buyers will aim for the 1.29395 resistance. This level seems a key mark for the buyers, which can activate a downward rebound. Meanwhile, the decisive breakout could trigger pair’s fresh run-up to a 5-days high surrounding 1.29700.

The technical picture is mixed.
Bollinger Bands are pointed sideways.
MACD volumes are in the negative zone and are moving along the zero line.
Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 1.28784, 1.28479, 1.28174.
Resistance levels: 1.29089, 1.29395, 1.29700.

Trading recommendations

Short positions can be opened below the level of 1.28784 with the target at around 1.28479 and stop-loss at 1.28880.
Long positions can be opened above the level of 1.29114 with the target at around 1.29395 and stop-loss at 1.29014.

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