Technical analysis of GBP/USD for January 17, 2014

Overview:

• The resistance of the GBP/USD pair had been already set at the level of 1.6445 (the weekly pivot point on January 17, 2013) and a minor resistance has set at the 1.6373 level. Therefore, according to the previous events, the price has still been moving between 0.6370 and 0.6285, then it should be noted that the range today will be around 110 pips. Consequently, the trend in the 1H time frame will be calling for a bearish market at the level of 1.6400. Hence, below 1.6400 look for further downside move with targets at 1.6330, if it will be able to break the minor support for today at 1.6333, so the price will continue towards 1.6265 today in order to test the weekly support. Notwithstanding, it should be always beware to set a stop loss, thus the best location to set the stop loss in this case should be above the weekly pivot point.

The material has been provided by InstaForex Company – www.instaforex.com