GBP/USD: Technical analysis 07.03.2018

Current trend

On the 4-hour chart, GBP/USD is growing along the upper line of the Bollinger Bands.

The instrument is now testing the resistance level of 1.3916 (Murray [4/8]).

The breakout will let the price to grow to the area of 1.3977 (Murray [5/8]).

If GBP/USD cannot consolidate above the level of 1.3916, the correction to the area of the level of 1.3832 (the middle line of Bollinger Bands) can develop.

Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term.

MACD is growing in the positive zone.

Bollinger Bands are directed up.

However, as the price has broken the upper border of Bollinger Bands, the downward correction is not excluded.

Stochastic’s lines are pointed downwards, reflecting the possibility of the downward movement formation.

Support and resistance

Support levels: 1.3855, 1.3793, 1.3732.

Resistance levels: 1.3916, 1.3977, 1.4038.

Trading recommendations

Long positions can be opened above the level of 1.3916 with the target at around 1.3977 and stop loss 1.3896.

Short positions can be opened below the level of 1.3880 with the targets at around 1.3855-1.3793 and stop loss 1.3905.