Intraday technical levels and trading recommendations for GBP/USD for January 6, 2014
January 6, 2014 11:15 am
The daily chart shows the GBP/USD pair has been moving within an expanding wedge pattern since September 10.
Daily breakthrough above 1.6240-1.6300 took place in December where another consolidation range was established between 1.6240-1.6450 untill 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 when bearish pressure was applied off the level of 1.6600 (the upper limit of the expanding wedge) resulting in a bearish engulfing daily candlestick.
The nearest dependable DAILY demand (support) level is located at 1.6250.
4H chart shows the same view with more details. On December 24, the bears failed to maintain sufficient bearish pressure to remain moving within the descending 4H channel which allowed the bulls to gather bullish momentum to push towards 1.6600.
The 4H view remains bullish as long as the bulls are defending their DEMAND zone between 1.6300-1.6250
As expected on Friday, the bears are applying further bearish momentum to push towards 1.6300 where another bullish swing may be initiated depending on the fundamental data releases later on the day.
Fundamentally, the market is waiting for significant data from the U.S. such as Factory Orders and ISM non-manufacturing data. Moreover, PMI services results will be released from the UK. Positive results above expected values will have bullish effect on the pair to revisit 1.6450 initially.
Tech. recommendations: the market may offer a valid opportunity to BUY the GBP/USD pair at retesting of 1.6250-1.6300 with SL as daily closure below 1.6220.
The material has been provided by InstaForex Company – www.instaforex.com
The daily chart shows the GBP/USD pair has been moving within an expanding wedge pattern since September 10.
Daily breakthrough above 1.6240-1.6300 took place in December where another consolidation range was established between 1.6240-1.6450 untill 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 when bearish pressure was applied off the level of 1.6600 (the upper limit of the expanding wedge) resulting in a bearish engulfing daily candlestick.
The nearest dependable DAILY demand (support) level is located at 1.6250.
4H chart shows the same view with more details. On December 24, the bears failed to maintain sufficient bearish pressure to remain moving within the descending 4H channel which allowed the bulls to gather bullish momentum to push towards 1.6600.
The 4H view remains bullish as long as the bulls are defending their DEMAND zone between 1.6300-1.6250
As expected on Friday, the bears are applying further bearish momentum to push towards 1.6300 where another bullish swing may be initiated depending on the fundamental data releases later on the day.
Fundamentally, the market is waiting for significant data from the U.S. such as Factory Orders and ISM non-manufacturing data. Moreover, PMI services results will be released from the UK. Positive results above expected values will have bullish effect on the pair to revisit 1.6450 initially.
Tech. recommendations: the market may offer a valid opportunity to BUY the GBP/USD pair at retesting of 1.6250-1.6300 with SL as daily closure below 1.6220.
The material has been provided by InstaForex Company – www.instaforex.com
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