Review and dynamics
The pair GBP/USD failed to continue yesterday’s uptrend caused by the positive data on the UK retail sales for October. The pair GBP/USD has been declining along with the other currency pairs because of the strong rise in the USD.
Yesterday the pair GBP/USD has broken down support level of 1.2475 (ЕМА200 on 4-hour chart) and continued to decline in the descending channel on the daily chart with the upper limit near the level of 1.2600 (ЕМА50 on the daily chart).
On 4 hour and daily charts the indicators OsMA and Stochastic give signals for short positions.
In case of breakout of the level of 1.2475 the pair may rise up to resistance level of 1.260 (ЕМА50 on the daily chart). Breakout of this level can trigger the rise to 1.2795 and 1.2875. Further rise is not expected.
On the weekly chart the pair GBP/USD is in the descending channel with the lower limit below the level of 1.1800.
In case of breakdown of support level of 1.2120 and further decline in the pair the targets will be at the levels of 1.2000, 1.1850, 1.8000 and 1.1750.
However, short positions are preferable.
Support levels: 1.2400, 1.2270, 1.2120, 1.2000, 1.1850 and 1.1800.
Resistance levels: 1.2475, 1.2640, 1.2715, 1.2795, 1.2875 and 1.2900.
Sell on the market. Stop-Loss: 1.2440. Take-Profit: 1.2400, 1.2270, 1.2120, 1.2000, 1.1850 and 1.1800.
Buy Stop: 1.2450. Stop-Loss: 1.2390. Take-Profit: 1.2500, 1.2615, 1.2640, 1.2715, 1.2795, 1.2875 and 1.2900.