GBP/USD: technical analysis 16.05.2019

GBP/USD: technical analysis 16.05.2019

Current trend

GBP/USD is in the stage of upward correction after falling to the level of 1.2825, but the downward trend is still maintained. The first target of the correction is the level of 1.2918, which corresponds to the middle line of Bollinger Bands. This case scenario will be active after the price is set above the level of 1.2878 (Murray [3/8]). Additionally, pair’s sustained trading beyond the 1.2939 (Murray [4/8]) could set the level of 1.3000 on buyers’ radar. The downward trend will be restored after the price is set below the level of 1.2817 (Murray [2/8]). In this case, the next target of sellers will be the level of 1.2756 (Murray [1/8]). Technical indicators mostly reflect the moderate maintenance of the current downward trend. Bollinger Bands are pointed downwards. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is pointed upwards, reflecting the possibility of the upward correction formation.

Support and resistance

Support levels: 1.2817, 1.2756, 1.2695, 1.2634.
Resistance levels: 1.2878, 1.2939, 1.3000, 1.3061.

Trading recommendations

Short positions can be opened below the level of 1.2817 with the target at around 1.2756 and stop-loss 1.2837.
Long positions can be opened above the level of 1.2878 with the target at around 1.2939 and stop-loss 1.2858.