Technical analysis of GBP/USD for February 4, 2014

Overview:

• According to previous events, the resistance of the GBP/USD pair has been already set at the level of 1.6370. Furthermore, the weekly support 1 sets at the level of 1.6370). But it should be noted that support has been broken and turned to resistance. Equally important, the weekly support 3 has been set at the level of 1.6172 on February 4, 2014. Accordingly, the price of the GBP/USD pair has been trapped between 1.6370 and 1.6300; thus, it is reasonable to be careful with action around this area. Also, it should be noted that the range today will be about 80 pips. As a result, the trend in H1 chart is going to call for a bearish market at the level of 1.6370. Thereupon, it looks for further downside move below 1.6370 with targets at 1.6313 and 1.6220 today. On the other hand, buy above the price of 1.6175 with the first target at 1.6255. It might resume to 1.6300 in order to test the support.

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