GBP/USD: technical analysis 22.03.2018

GBPUSDH422032018

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 level of 1.4160 (Murray [8/8]).

The breakout of this level will let the price to grow to the area of 1.4221 (Murray [+1/8]).

Technical indicators mostly keep a buy signal.

MACD is active growing in the positive zone.

Bollinger Bands are directed up.

However, as Stochastic is in the overbought area, and the price has broken the upper border of Bollinger Bands, the downward correction is not excluded.

The main target of the downward correction will be the level of 1.4038 (Murray [1/8]), which corresponds to the middle line of Bollinger Bands.

This case scenario will be relevant in case of consolidation the price below the level of 1.4115.

Support and resistance

Support levels: 1.4099, 1.4038, 1.3977.

Resistance levels: 1.4160, 1.4221, 1.4282.

Trading recommendations

Long positions can be opened above the level of 1.4160 with the target at around 1.4221 and stop-loss 1.4140.

Short positions can be opened below the level of 1.4115 with the target at around 1.4038 and stop-loss 1.3135.