Technical Analysis GBPUSD : 2020-01-20

Recommendation:

Strong sell
Strong sellSellNeutralBuyStrong buy

Above 1.2961

Buy Stop

Below 1.2971

Stop Loss

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Senior Analytical Expert
Articles 1440
IndicatorValueSignal
RSI Neutral
MACD Buy
MA(200) Sell
Parabolic SAR Sell
Fractals Sell
Donchian Channel Sell

Chart Analysis

IFC Markets Tech Analysis

On the hourly timeframe the GBPUSD: H1 is falling below declining 200-period moving average MA(200).

We believe the bearish momentum will resume after the price breaches below the lower boundary of Donchian channel at 1.2961. 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 1.12971. After placing the order, the stop loss is to be moved to the next fractal high, 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

UK retail sales declined 0.3% over month in January instead of an expected 0.5% gain. Will the GBPUSD continue declining?

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