Intraday technical levels and trading recommendations for GBP/USD for January 21, 2014
January 21, 2014 1:30 pm
The double-top pattern establishedat testing of the level of 1.6600 (the upper limit of the expanding wedge)achieved its projection target (1.6350) one week later.
The failure of the GBP/USD pair to break down 1.6350 allowed enough bullish momentum to be gathered to push again towards 1.6460. This price level provided a SELL entry shortly after as expected.
Further bearish pressure was applied on the pair last week (lower highs around 1.6450 and 1.6375 and a lower low around 1.6300).
Failure of the bears to breach 1.6300 allowed the bulls to push again towards 1.6350 (50%Fibonacci and the upper limit of the ongoing channel) where another SELL entry can be taken with SL for all sell orders as 4H closure above 1.6400.
Estimated bearish targets are located at 1.6310 then possibly 1.6250-1.6230 (prominent DEMAND zone). The bears need to achieve 4H fixation below 1.6310 to gather enough bearish momentum.Otherwise, the bulls will be shooting at 1.6460 again.
Price action should be watched carefully at 1.6250-1.6230 to catch a BUY entry to make profits of the ongoing long-term bullish direction.
The material has been provided by InstaForex Company – www.instaforex.com
The double-top pattern establishedat testing of the level of 1.6600 (the upper limit of the expanding wedge)achieved its projection target (1.6350) one week later.
The failure of the GBP/USD pair to break down 1.6350 allowed enough bullish momentum to be gathered to push again towards 1.6460. This price level provided a SELL entry shortly after as expected.
Further bearish pressure was applied on the pair last week (lower highs around 1.6450 and 1.6375 and a lower low around 1.6300).
Failure of the bears to breach 1.6300 allowed the bulls to push again towards 1.6350 (50%Fibonacci and the upper limit of the ongoing channel) where another SELL entry can be taken with SL for all sell orders as 4H closure above 1.6400.
Estimated bearish targets are located at 1.6310 then possibly 1.6250-1.6230 (prominent DEMAND zone). The bears need to achieve 4H fixation below 1.6310 to gather enough bearish momentum.Otherwise, the bulls will be shooting at 1.6460 again.
Price action should be watched carefully at 1.6250-1.6230 to catch a BUY entry to make profits of the ongoing long-term bullish direction.
The material has been provided by InstaForex Company – www.instaforex.com
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