The current technical pattern indicates the correction of the GBP/USD currency pair after a rather protracted rally. The risks of the trade war have weakened once again, which supports the demand for the US dollar. At the moment, near the local resistance level of 1.42400, a classic Price Action pattern of Bearish Engulfing (H1 timeframe H1), which acts as a reversal formation, has been formed. The price is testing the local support level of 1.41900. We recommend you to pay attention to this situation.
If the price fixes below the level of 1.41900, you need to look for entry points to the market to open short positions. The immediate goal of profit taking is 1.41400. In the medium term, the GBP/USD currency pair may reach a "mirror" support level of 1.40850. When following the positions, we recommend using a trailing stop.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.Open Account