Technical analysis 22.05.19

GBPUSD

The pair remains in a short-term downtrend due to the uncertainty surrounding Brexit, as well as the government crisis in the UK. Stronger position of the USD rate and the possible lack of inflation growth in the UK may put the pair under pressure.

The price is below the lower Bollinger band, below SMA 5 and SMA 14. RSI is below the level of 50% and is reentering the oversold territory. Stoch are also entering this zone.

Trading recommendations:

The pair may correct upwards to 1.2700, but if it doesn’t take hold above this level, sell the pair with a local target of 1.2575.