Technical analysis 18.10.18

GBPUSD

The pair is trading above 1.3080 in expectation of the outcome of the EU leaders’ meeting. If the summit doesn’t result in a comprehensive Brexit agreement, the pair may resume its decline. Only in case of positive news the pair is likely to start growing.

The price is below the middle Bollinger band, below SMA 5, but above SMA 14. RSI is below the level of 50% and is moving down. Stoch are in the oversold zone.

Trading recommendation:

If the EU summit news are negative, sell the pair with a possible target of 1.3000 and then 1.2920. In the opposite scenario, the pair may surge to 1.3200–30.