GBP/USD: technical analysis 17.01.20

Current trend

GBP/USD quotes attempted to grow, but reaching 1.30796 mark moved to a downward correction.
The first strong support on the way down will be 1.30615 level. This level can activate an upward rebound while its breakdown can accelerate the pair towards 1.30310 support, which coincided with the middle line of Bollinger Bands. This level will be a key target of the downward correction.

Alternative scenario

The upward rebound from 1.30615 and pullback above 1.30796 will give a prospect of growth to the 1.30920 resistance. The decisive break of this level is needed to indicate the upward trend resumption. In this case, the next targets of buyers will be the level of 1.31226.

Technical indicators

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

Bollinger Bands are pointed upwards.

MACD is growing in a positive zone.

Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 1.30615, 1.30310, 1.30005.
Resistance levels: 1.30920, 1.31226, 1.31531.

Trading recommendations

Short positions can be opened below the level of 1.30615 with the target at around 1.30310 and stop-loss at 1.30716.
Long positions can be opened above the level of 1.30920 with the target at around 1.31226 and stop-loss at 1.30820.

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