GBP/USD: technical analysis 02.04.20

Current trend

On the 4-hour chart, the instrument is in the stage of consolidation around the 1.23850 level, which coincided with the middle line of Bollinger Bands. If the "bulls" manage to raise the rate above the level of 1.24000, the growth can continue to the area of 1.24376-1.24512 resistance. The upper border seems a strong hurdle, which can prevent the instrument from growing. Meanwhile, a significant breakout of 1.24512 could trigger a pair' active run-up to the last week high surrounding 1.24846.

Alternative scenario

The pullback below 1.23700 will be a sign of the downward trend formation and give a prospect of decline to the area of 1.23500-1.23200 support. The key level for the pair will be 1.23000 support. The sellers will be looking for successful trading below it to challenge the 1.22500 mark.

Technical indicators

The technical picture is mixed.

Bollinger Bands are pointed sideways.

MACD volumes are in the positive zone and are moving along the zero line.

Stochastic is pointed upwards, forming a weak buy signal.

Support and resistance

Support levels: 1.23850, 1.23500, 1.23200, 1.23000.
Resistance levels: 1.24000, 1.24376, 1.24512, 1.24846.

Trading recommendations

Short positions can be opened below the level of 1.23700 with the target at around 1.23400 and stop-loss at 1.23800.
Long positions can be opened above the level of 1.24000 with the target at around 1.24376 and stop-loss at 1.23874.

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