Intraday technical levels and trading recommendations for GBP/USD for February 4, 2014
February 4, 2014 6:30 am
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 consolidation (two Doji daily candlesticks) was expressed around 1.6600 until obvious bearish pressure was applied on the currency pair resulting in a bearish pattern Three Black Crows which was confirmed with Yesterday’s daily closure.
The next demand level is located at 1.6250 where a recent bottom was established on December 17.
As mentioned before, the GBP/USD pair short-term direction turned to be bearish after the breakdown at 1.6450-1.6460.
Fixation below 1.6450 triggered bearish pressure towards 1.6400 then 1.6300 which was hit during late Monday’s consolidations.
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 corrective bullish movement to the upside to collect further bearish pressure/momentum. However, early fixation below this zone will bring further bearish momentum without the retesting of 1.6450.
Selling the pair is suggested at the 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 consolidation (two Doji daily candlesticks) was expressed around 1.6600 until obvious bearish pressure was applied on the currency pair resulting in a bearish pattern Three Black Crows which was confirmed with Yesterday’s daily closure.
The next demand level is located at 1.6250 where a recent bottom was established on December 17.
As mentioned before, the GBP/USD pair short-term direction turned to be bearish after the breakdown at 1.6450-1.6460.
Fixation below 1.6450 triggered bearish pressure towards 1.6400 then 1.6300 which was hit during late Monday’s consolidations.
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 corrective bullish movement to the upside to collect further bearish pressure/momentum. However, early fixation below this zone will bring further bearish momentum without the retesting of 1.6450.
Selling the pair is suggested at the 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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