GBP/USD: TECHNICAL ANALYSIS 31.10.2019
On the 4-hour chart, the instrument is growing along the upper line of the Bollinger Bands. The price is approaching a strong resistance in the region of 1.29395. Assuming the pair’s ability to cross this level, the mark of 1.29547 and the 1.29700 can be targeted if holding long positions.
The rebound from the level of 1.29395 and the pair’s sustained move below 1.28969 will be a signal for a downward correction. In this case, the next targets of sellers will be the level of 1.28621, which coincided with the middle line of Bollinger Bands. This level seems a key target of correction. There is a chance of an upward rebound, while its breakdown will indicate the downward trend resumption and give the prospect of decline to the levels of 1.28479-1.28326.
Technical indicators reflect the moderate maintenance of the current upward trend.
Bollinger Bands are diverging on the background of bullish momentum.
MACD is slowly growing in the positive zone.
Stochastic is in the overbought zone and is pointed upwards.
Support and resistance
Support levels: 1.28969, 1.28621, 1.28479.
Resistance levels: 1.29395, 1.29547, 1.29700.
Long positions can be opened above the level of 1.29395 with the target at around 1.29547-1.29700 and stop-loss 1.29300.
Short positions can be opened below the level of 1.28920 with the target at around 1.28621, and stop-loss 1.29920.