Technical analysis: Will the GBP/USD price retreat reverse?
GBP/USD technical analysis summary
Sell Stop։ Below 1.3349.
Stop Loss։ Above 1.3408.
| Indicator | Signal |
| RSI | Buy |
| MACD | Sell |
| Donchian Channel | Sell |
| MA(200) | Sell |
| Fractals | Neutral |
| Parabolic SAR | Sell |
GBP/USD chart analysis
The technical analysis of the GBPUSD price chart on a 1-hour timeframe shows GBPUSD: H1 failed to breach the resistance line under the 200-period moving average MA(200) which is falling itself. We believe the bearish movement will continue after the price breaches below the lower bound of the Donchian channel at 1.3349. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 1.34708 After placing the order, the stop loss is to be moved to the next fractal high indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend canceling the order: the market has undergone internal changes which were not taken into account.
Fundamental analysis of forex – GBP/USD
UK’s private business sector expansion accelerated in November. Will the GBPUSD price retreat reverse?
UK’s private sector expansion accelerated in November: Markit reported UK Flash Manufacturing PMI rose to 58.2 in November from 57.8 in October when a decline to 57.2 was forecast. This is bullish for GBPUSD. However, the current setup is bearish for the pair.
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Author
Dmitry Lukashov
IFC Markets
Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.
