GBP/USD technical analysis for 20/02/2019:
The technical resistance is now violated, 61% Fibo is tested
Technical market overview:
The key technical resistance at the GBP/USD market located at the level of 1.2935 had been violated and the bulls have managed to move the price to the level of 61% Fibo at 1.3046. Even a new local high was made at the level of 1.3071 and the price is trading around this level as there is a short-term trend line dynamic resistance as well. The market conditions are now overbought and despite the strong and positive momentum, a local pull-back should be expected towards the levels of 1.3042, 1.3012 and 1.3000. In the case of a deeper correction, the target is seen at the level of 1.2958.
The trend is still down, so this spike up should be treated as a local upward correction in a longer-term downtrend.
Weekly Pivot Points:
WR3 - 1.3163
WR2 - 1.3061
WR1 - 1.2979
Weekly Pivot - 1.2879
WS1 - 1.2794
WS2 - 1.2689
WS3 - 1.2606
Trading recommendations:
The sell orders should be opened as close as it is possible to the level of 1.3070 with a very tight protective stop loss. The first target is seen at the level of 1.3012 and 1.3000. In a case of any breakout lower, the next target is seen at the level of 1.2958.
