30.01.201210:26 Forex Analysis & Reviews: USD/CAD Survey according to the Point and Figure Charting for January 30, 2012

Long-term review

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Daily chart: This pair has remained above the support level of 1.6766, where the GBP/USD has tried to make a breakout to continue falling. If the GBP/USD manages to make a rebound at that support level, it is expected to rise to the resistance level of 1.6851. For now, this pair continues forming a higher low pattern. The MACD indicator is entering negative territory.

H4 chart: GBP/USD formed a fractal near the resistance level of 1.6820, where the pair remained strong in the bearish bias. If the GBP/USD manages to make a breakout at the level of 1.6762, the next target would be the support level of 1.6731. However, the GBP/USD could try to climb up the resistance level of 1.6900, because this pair is oversold.

H1 chart: This pair has moved in a range for the last hours, below the resistance level of 1.6800. If the GBP/USD manages to make a breakout at the 1.6750 level, it would be expected to fall to the level of 1.6700, that is quite likely, given that the MACD indicator is entering overbought area.

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 1.6750, take profit is at 1.6700, and stop loss is at 1.6800.

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