Forecast for the the GBP / USD currency pair
Published on 26.05.2020 11:19

Today we continue to trade the GBP / USD currency pair. At the time of writing, a trading signal was formed for this currency pair. There are two types of trading strategies when trading using support and resistance levels: for the breakdown of the level and for the rebound from the level. Now the currency pair is close to the resistance zone 1.2265-1.2280. Accordingly, traders will be divided into two camps: those who will now sell and those who will buy to break through the resistance level.

Trading outlook:

The main scenario.

The continuation of the downward movement remains increased, so buy orders under the marked resistance area remain in the risk zone. As a result, the appearance of a false breakout 1.2280 and the return of the currency pair to the level of 1.2265 will be considered as a sell signal with minimal risk.

Alternative scenario.

A Break for the currency pair above the resistance level 1.2280 will open the way to the next target 1.2370. However, this trading signal is weak according to my trading strategy.

A surge in trading activity may occur during the opening of the US trading session and the publication of a report on consumer confidence in the United States.

The above review is not a direct guide to action, but carries an exclusively recommendatory nature.


Andrew Masters

Analyst

The world of trading has no boundaries
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