Technical analysis: Will the GBP/USD price retreat continue?

Dmitry Lukashov IFC Markets

GBP/USD technical analysis summary

Sell Stop: Below 1.3254.

Stop Loss: Above 1.3298.

Indicator	Signal
RSI	Neutral
MACD	Sell
Donchian Channel	Sell
MA(200)	Sell
Fractals	Sell
Parabolic SAR	Sell

GBP/USD chart analysis

The GBPUSD technical analysis of the price chart on 1-hour timeframe shows GBPUSD: H1 is falling 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 1.3254. 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 1.3298. 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 cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis of Forex - GBP/USD

UK service PMI final reading was downgraded for November. Will the GBPUSD price retreat continue?

UK service PMI final reading was downgraded for November: Markit reported UK service PMI final reading was downgraded to 58.5 for November from 58.6 of flash estimate. This is bearish for GBPUSD.

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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.

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