22.05.201800:50 Forex Analysis & Reviews: Technical analysis and trading recommendations for the GBPUSD currency pair as of May 21, 2018

For two weeks the quotation was hanging in the range of 1.3440/1.3610, where the range level of 1.3440/1.3480 was not given to "bears", but today - "oh, miracle" - we managed to fix below. But is this the breakdown? Analyzing what is happening, from the technical point of view, everything looks good: stagnation before breakdown ---> impulse ----> stop, with pullback. BUT should I open positions already? We should not hurry, we understand that the passed level was strong and the bulls still do not really want to let it go, and the overbought dollar tells us a lot. Now we are working on the principle of break-down, where the quotation will try to increase from the previous level (1.3440) in the downward direction. If this quotation succeeds, we will reach the value of 1.3300 pretty quickly, but I would consider selling positions only after fixing the price lower than the current breakdown of 1.3389, so as not to run into false wagging.

Key Levels

Resistance - 1.3440 **; 1,3610 *; 1.3700; 1.4000 ***; 1.4240 *.

Support 1,3300 *; 1,3000 ***.

* Periodic level

** Range level

*** Psychological level

Please note: Predictions are not a direct guide to action!