Intraday technical levels and trading recommendations for GBP/USD for January 10, 2014
January 10, 2014 2:45 pm
Breakthrough above 1.6240-1.6300 took place at the end of November. Another consolidation range was established between 1.6240-1.6450. The last bullish impulse was initiated towards 1.6570-1.6600 in an attempt of bulls to record new highs in 2013.
The last bearish rejection took place on Thursday (January, 2) when bearish pressure was applied near the level of 1.6600 (the upper limit of the expanding wedge) resulting in a double-top pattern with multiple bearish engulfing candlesticks in the right limb of the pattern.
Having managed to breakdown 1.6460, the GBP/USD pair showed indecision at 1.6340-1.6440. The bulls established an inverted head and shoulders pattern which achieved its projection target at 1.6460 as mentioned in previous articles this week.
In the short term, 1.6460-1.6480 (Supply Zone) will probably gather enough bearish momentum to push lower towards 1.6280-1.6230 (prominent DEMAND zone).
SELLING the GBP/USD pair at the current levels around 1.6460 will probably be a valid option with tight Stop Loss as 4H closure above 1.6500.
Be cautious with decision-making as two important fundamental releases were negative for the U.S. except for monthly unemployment rate. This may influence the pair strongly during today’s consolidations, so it is recommended to stick to our SL mentioned above.В В
The material has been provided by InstaForex Company – www.instaforex.com
Breakthrough above 1.6240-1.6300 took place at the end of November. Another consolidation range was established between 1.6240-1.6450. The last bullish impulse was initiated towards 1.6570-1.6600 in an attempt of bulls to record new highs in 2013.
The last bearish rejection took place on Thursday (January, 2) when bearish pressure was applied near the level of 1.6600 (the upper limit of the expanding wedge) resulting in a double-top pattern with multiple bearish engulfing candlesticks in the right limb of the pattern.
Having managed to breakdown 1.6460, the GBP/USD pair showed indecision at 1.6340-1.6440. The bulls established an inverted head and shoulders pattern which achieved its projection target at 1.6460 as mentioned in previous articles this week.
In the short term, 1.6460-1.6480 (Supply Zone) will probably gather enough bearish momentum to push lower towards 1.6280-1.6230 (prominent DEMAND zone).
SELLING the GBP/USD pair at the current levels around 1.6460 will probably be a valid option with tight Stop Loss as 4H closure above 1.6500.
Be cautious with decision-making as two important
fundamental releases were negative for the U.S. except for monthly unemployment
rate. This may influence the pair strongly during today’s consolidations, so it
is recommended to stick to our SL mentioned above.В В
The material has been provided by InstaForex Company – www.instaforex.com
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