Technical analysis of GBP/USD for May 21, 2020

By | May 21, 2020
InstaForex
Technical analysis of GBP/USD for May 21, 2020

Relevance up to 03:00 2020-05-22 UTC–5

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Overview:

  • Pair: GBP/USD.
  • Pivot: 1.2270.

Forecast:

  • It is gainful to buy above the price of 1.2167 (S1) with targets at 1.2388 and 1.2466. However, the bullish trend is still expected for the upcoming days as long as the price is above 1.2074.

More details:

  • On one-hour chart, the GBP/USD pair is continuing in a bullish market from the support levels of 1.2074 and 1.2167. Also, it should be noted that the current price is in a bullish channel since two days.
  • Equally important, we have good signals of indicators that lies in the RSI is still signaling that the trend is upward as it is still strong above the moving average (100) since yesterday.
  • Immediate support is seen at 1.2167 which coincides with the first support. Consequently, the second support sets at the level of 1.2074.
  • So, the market is likely to show signs of a bullish trend around the spot of 1.2167/1.2074.
  • The market is still calling for strong bullish trend as long as the price is set above the major support level of 1.2074.
  • In other words, buy orders are recommended above the level of 1.2167 with the first target at the level of 1.2274 in order to test the pivot point.
  • Furthermore, if the trend is able to break through the first resistance of 1.2274. As a result, the pair will climb towards the double top (1.2466) to test it in coming hours.
  • On the other hand, stop loss should always be in account, so, it must set the stop loss below the second support of 1.2074.

Comment:

  • The EUR/USD pair climbed from 1.2074 to 1.2215.
  • The strong resistance will be formed at 1.2466.
  • Daily pivot is set at 1.2270.
  • The market is still indicating a strong bullish trend from the area of 1.2074/1.2167.

Daily Technical level:

  • Major resistance: 1.2466
  • Minor resistance: 1.2388
  • Intraday pivot point: 1.2270
  • Minor support: 1.2167
  • Major support: 1.2074

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by Mourad El Keddani,
Analytical expert
InstaForex Group © 2007-2020

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