Intraday technical levels and trading recommendations for GBP/USD for February 3, 2014
February 3, 2014 4:15 pm
A bullish breakout above 1.6250 took place on November 27. The GBP/USD pair successfully achieved its projection target around 1.6600. This price level is acting as a daily resistance for the pair until now.
Last bullish movement exceeded 1.6600 rendering 1.6666 as the highest price in January. However, bearish engulfing daily candlestick was immediately expressed off these high levels (1.6666).
Some sideway consolidations took place around 1.6600 untill obvious bearish pressure was applied on the currency pair resulting in a bearish pattern Three Black Crows if the current daily candlestick remains bearish until the closure.
The next demand level is located at 1.6250 where a recent bottom was established on December 17. The pair may find some Intraday Support at 1.6300-1.6320 on the shorter time frames.
As mentioned before, the GBP/USD pair short-term direction turned to be bearish after breakdown of 1.6450-1.6460.
Fixation below 1.6450 applied further bearish pressure towards 1.6400 then 1.6320 which is being approached now.
The 4H chart shows a demand zone located at 1.6320-1.6300 corresponding to the backside of the depicted bearish channel as well as previous congestion zone.
This price zone may initiate a corrective bullish movement to the upside to collect further bearish pressure/momentum.
Selling the pair is suggested at retesting of 1.6450 with Stop Loss as daily closure above 1.6475.
The material has been provided by InstaForex Company – www.instaforex.com
A bullish breakout above 1.6250 took place on November 27. The GBP/USD pair successfully achieved its projection target around 1.6600. This price level is acting as a daily resistance for the pair until now.
Last bullish movement exceeded 1.6600 rendering 1.6666 as the highest price in January. However, bearish engulfing daily candlestick was immediately expressed off these high levels (1.6666).
Some sideway consolidations took place around 1.6600 untill obvious bearish pressure was applied on the currency pair resulting in a bearish pattern Three Black Crows if the current daily candlestick remains bearish until the closure.
The next demand level is located at 1.6250 where a recent bottom was established on December 17. The pair may find some Intraday Support at 1.6300-1.6320 on the shorter time frames.
As mentioned before, the GBP/USD pair short-term direction turned to be bearish after breakdown of 1.6450-1.6460.
Fixation below 1.6450 applied further bearish pressure towards 1.6400 then 1.6320 which is being approached now.
The 4H chart shows a demand zone located at 1.6320-1.6300 corresponding to the backside of the depicted bearish channel as well as previous congestion zone.
This price zone may initiate a corrective bullish movement to the upside to collect further bearish pressure/momentum.
Selling the pair is suggested at retesting of 1.6450 with Stop Loss as daily closure above 1.6475.
The material has been provided by InstaForex Company – www.instaforex.com
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