27 Januari 2016 4:02 AM
GBP/USD had a bullish momentum above the support at 1.4198 after a fractal structure formation declined from the January 22th highs. The H1 chart is showing that a high pattern can move further above the 200 SMA and the support can be found at 1.4309. This level is a key bottom for GBP/USD, as we saw a strong sellers' reaction to the price action during the sessions of January 18th, 19th, 22th and 25th. Additionally, a break above the 1.4373 level will expose the pair to the next resistance placed around 1.4464, where a inflection zone was formed during the January 13th session. MACD indicator is reaching overbought conditions, so the pair may start to make pullbacks to test the 1.4309 level and to resume the bearish bias.
H1 chart's resistance levels: 1.4373 / 1.4464
H1 chart's support levels: 1.4309 / 1.4198
Trading recommendations for today: Based on the H1 chart, sell (short) orders are recommended only if GBP/USD breaks a bearish candlestick; the support level is at 1.4309, take profit is at 1.4198, and stop loss is at 1.4422.
The material has been provided by InstaForex Company - www.instaforex.com
