FX.co ★ GBP/USD analysis for May 21, 2018

Recently, the GBP/USD pair has been trading downwards. As I expected, the price tested the level of 1.3394. According to the H1 time – frame, I found a successful breakout of the strong support trendline in the background, which is a sign that sellers are under control. I also found a hidden bearish divergence on the MACD oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunities on the rallies. The downward target is set at the price of 1.3355 (Fibonacci expansion 161.8%)

Resistance levels:

R1: 1.3485

R2: 1.3495

R3: 1.3505

Support levels:

S1: 1.3465

S2: 1.3454

S3: 1.3445

Trading recommendations for today: watch for potential selling opportunities.