24.01.201620:01 Forex Analysis & Reviews: Daily analysis of GBP/USD for January 25, 2016

Long-term review

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The pair found strong resistance around the 200 SMA in the H1 chart, where a dynamic supply zone is highly active. This could produce some kind of decline on a short-term basis, as the cable can try another breakout below the level of 1.4198, in order to extend the downside bias until the level 1.4080. Bear in mind that the GBP/USD pair has already found strong bottom over that low level and a stronger rebound can happen for a very large corrective move. The MACD indicator is at 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 at level of 1.4198, take profit is at 1.4080, and stop loss is at 1.4309.

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