Technical analysis of GBP/USD for February 06, 2017

Overview:

• The GBP/USD pair has been moving in a bullish trend from the support levels of 1.2473, 1.2380 and 1.2287 since last week. There are no changes in our technical outlook. The bias remains bullish in the nearest term testing 1.2681 or higher.
  Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 1.2380 and 1.2473, while the weekly strong support is found at 1.2287. Consequently, the first support is set at the level of 1.2380. The market is likely to show signs of a bullish trend around the spot of 1.2380 – 1.2450. In other words, buy orders are recommended above the 1.2450 level with the first target at the level of 1.2605.
• Furthermore, if the trend is able to break through the first resistance level of 1.2605, we will see the pair climbing towards the double top (1.2774) to test it in coming days. Thus, the market is indicating a bullish opportunity above the support levels of 1.2380 – 1.2450, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.2287.

The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com