Technical analysis of GBP/USD for January 30, 2014

Overview:

• According to beforehand events, the price of GBP/USD pair has still been trapping between the level of 1.6635 and the 1.6515 level, for that it is of the discernment to pay attention at this range area around the level 50% of Fibonacci retracement levels. Therefore, the first step is to looking forward for a period of tight sideway range market before investing. Thence, probably the market is going to start showing the signs of bullish market above the price of 1.6634 because it represent a major resistance and is about to breakout. In other words, it will be a good sign to buy above the support 1 (1.6634) with a first target of 1.6667 in order to form a double top and it will climb towards the second resistance at the 1.6786 price. However, if the pair could not break this resistance, hence the market will indicate a bearish opportunity below 1.6640; then the level is going to act really as strong resistance. So, it will be a good sign to sell below this psychological level with a first target of 1.6514 (the weekly pivot point and it is going to call for downtrend in order to continue a bearish market towards 1.64.

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