GBP/USD: technical analysis 18.06.2019

GBP/USD: technical analysis 18.06.2019

Current trend

The price has tested the support level of 1.2512 (Murray [5/8]) and was slightly corrected upwards, but the general downward trend maintains. A significant decrease is possible after the breakdown of the level 1.2512. In this case, the next targets of sellers will be the level of 1.2451 (Murray [4/8]). The level of 1.2451 seem a key level for the sellers in short term period. There is a high chance of a upward reverse. If the “bulls” manage to raise the rate above the level of 1.2573 (Murray [6/8]), the correction can continue to the area of 1.2634 (Murray [7/8]), which coincided with the middle line of Bollinger Bands. Technical indicators reflect the moderate maintenance of the current downward trend. Bollinger Bands are pointed downwards. MACD volumes are in the negative zone. Stochastic is in the overbought area and is pointed sideways.

Support and resistance

Support levels: 1.2512, 1.2451, 1.2390.
Resistance levels: 1.2573, 1.2634, 1.2695.

Trading recommendations

Short positions can be opened below the level of 1.2512 with the target at around 1.2451 and stop-loss 1.2532.
Long positions can be opened above the level of 1.2573 with the target at around 1.2634 and stop-loss 1.2553.