GBP/USD

GBP/USD: technical analysis

Current trendо,  Оn the daily chart, the GBP/USD pair continues to trade within the wide downward channel. The price reversed from its lower border, reached 1.2695 (Murrey [0/8], the middle line of Bollinger bands) but could not rise further. Now a new decline to 1.2573 (Murrey [–1/8]) and 1.2500 (the lower border of Bollinger bands) is expected, which is indicated by the downward reversal of Stochastic and the downward movement of Bollinger bands. The key “bullish” level is 1.2695. In case of its breakout, the price may grow to the levels of 1.2817 (Murrey [1/8]) and, possibly, to 1.2940 (Murrey [2/8], Fibonacci 23.6%, the upper border of Bollinger bands).

In general, in the near future, a more gradual decrease in price slowed down due to the New Year holidays, seems more likely.

Support and resistance

Resistance levels: 1.2695, 1.2817, 1.2940.

Support levels: 1.2573, 1.2500.

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Trading tips

Short positions can be opened from the current level with the targets at 1.2573, 1.2500 and stop loss around 1.2690.

Long positions can be opened after the price consolidates above the level of 1.2695 with the targets at 1.2817, 1.2940 and stop loss 1.2660.

Implementation period: 5–7 days.

 

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.2633
Take Profit 1.2573, 1.2500
Stop Loss 1.2690
Key Levels 1.2500, 1.2573, 1.2695, 1.2817, 1.2940

 

Alternative scenario

 

Recommendation BUY STOP
Entry Point 1.2700
Take Profit 1.2817, 1.2940
Stop Loss 1.2660
Key Levels 1.2500, 1.2573, 1.2695, 1.2817, 1.2940

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