Technical Analysis 18.01.2019

GBPUSD

The pair has reached it local maximum level following the news that Theresa May will keep her position as the Prime Minister and will be able to continue Brexit talks with the EU. This means that the price may correct downwards due to local technical overboughtness.

The price is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is above the overbought territory and is starting to reverse downwards. Stoch are n the overbought zone and also are reversing downwards.

Trading recommendations:

If the price drops below 1.2955, it may go further down to 1.2900.