GBP/USD analysis for May, 29.05.2019

GBP/USD did trade lower as we expected. The price tested our second downward target at 1.2615. Selling looks risky at this stage cuuse the major low is very close. Watch for potential rally.

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White lines – Downward channel

Red rectangle – Support

White rectangle – Resistance

GBP price did test and reject from our key support at 1.2615, which is sign that sellers lost momentum on downside and that rally may start. Short-term resistance is at 1.2653 and breaking above it will open the way for a move towards the resistance at 1.2670. Buy divergence is present on the stochastic oscillator, watch for potential buying opportunities.

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