FX.co ★ GBP/USD 07.02.2019 - New momentum low on the oscillator, downward move still in play

Industry news:

In her prepared remarks to be delivered in London, Cleveland Federal Reserve Bank President Loretta Mester on Tuesday argued that cutting rates now could reinforce negative sentiment and encourage financial imbalances and added that she'd like to gather more information before considering a change in the monetary policy.

The US Dollar Index didn't react to these hawkish remarks and was last seen virtually unchanged on the day near 96.80

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Trading recommendation

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GBP traded according to my yesterday's game plan. GBP did almost tested our first target at the price of 1.2565. Anyway, I still see strong downside pressure and potential of downward targets at 1.2565 and 1.2515.

Green rectangle – Support (1.2565)

Blue rectangle- Support 2 (1.2515)

Yellow rectangle – Intraday resistance (1.2630)

MACD oscillator is showing the new momentum low in the background and the GBP is trading in the negative territory, which confirms my bearish view. Stochastic oscillator is in oversold zone together with the RSI oscillator, which is sign that we can see rally before new wave down. The level of 1.2600 is round number and potential good zone for selling, so pay attention to that level. As long as the GBP is trading below the 1.2665, I would watch for selling opportunities.