19.01.201623:53 Forex Analysis & Reviews: Daily analysis of GBP/USD for January 20, 2016

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

On the H1 chart, GBP/USD is reaching new multi-year lows, after a breakout below the support level of 1.4198. Currently, we are expecting a lower low pattern formation which could deliver more declines, as the 200 SMA still points to the downside. Fractals are also showing a well-established bearish structure. The MACD indicator is in the negative territory.

H1 chart's resistance levels: 1.4309 / 1.4373

H1 chart's support levels: 1.4198 / 1.4080

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is found at 1.4198, take profit is at 1.4080, and stop loss is at 1.4309.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.