GBP / USD Technical Overview May 16, 2019

GBP / USD was again depressed in the middle of yesterday’s trade. After a brief fight against the New York session, unfortunately, resistance from the British currency did not last long. Ahead of yesterday’s close of trading, GBP / USD was again pressed near the lowest level of the day.

Starting today’s trading session, the GBP / USD movement tends to be flat between Fibonacci 0 and 23.6% levels. In the Asian session, the movement of GBP / USD was generally not too wide. What are the trading predictions today?

Chart Reading and Prediction

In the D1 timeframe the price is moving down after recording the highest price on last Friday. The trend line for the medium Stochastic Oscillator (Stoch-Osc) appears to decline even though in the long term there is bullish sentiment on this indicator. This is in line with the Moving Average (MA) of the short and medium periods which illustrate the continuing decline in price movements. Prices appear to be stuck in the long period MA as a support line.

The price chart on the H4 timeframe shows the pattern of MA formation named “confirmed downtrend” where the short period MA is already below the long period MA (medium period MA is down). All Stoch-Osc lines are still below the 23.6% level, indicating that the trend is currently quite strong. As far as the Stoch-Osc line is below the level of 23.6%, the downtrend is still considered strong and there is no indication of reversal.

Short-term Stoch-Osc in the H1 timeframe has moved closer to the overbought area, but the long-term stoch-oscards still hold in the lower area. This indicates that there is a possibility of a price correction going up today. The long distance between the two shows that the strength of the price increase is not too high.

Predicted price movements of GBP / USD today move in the range of support and resistance, 1.2803 and 1.2900 respectively. If before the opening of the American market the price has broken the 1.2900 level, there will be a possibility that the price will go up to the level of 1.2960. Conversely, if the price breaks the level of 1.2803 it is likely that the price will continue moving down near the level of 1.2765. We recommend a wait and set buy limit at 1.2765 with a target of 1.2830 and stop loss 1.2725.