GBPUSD Analysis 14.01.2019

The GBPUSD traded positively last Friday to break above the 1.2800 level and stabilize above it, which supports our continued bullish outlook for the coming period and is open to our awaited target at 1.2962.

The moving averages support the high price as we see the intersection of the moving average 7 with the SMA 50, indicating the end of the old bearish path and starting a new path but waiting until the 20 and 50 averages are crossed until we get the ideal order of the rise

Stochastic is in the overbought area and gives signals to break out. Therefore we are likely to see a correction in the price movement to the support level at 1.2780 at 38.2% Fibonacci retracement which is near the moving averages 7 and 50

Stability above 1.2735 is important for the continuation of the suggested rally, as breaching it will push the price to test the 1.2636 level initially before any new attempt to rise.

The trading range for today is among the key support at 1.2755 and resistance at 1.2960

Support and resistance:

Support: 1.2780-1.2713-1.2665

Resistance: 1.2875-1.2965

The general trend for today is bullish