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05.01.201503:56 Forex Analysis & Reviews: Daily analysis of GBP/USD for January 05, 2015

Long-term review

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The GBP/USD is showing a strong weakness in the current trend and is something that is clearly reflected in the daily chart, as this pair opened the week with a bearish gap. Now, the GBP/USD is preparing to consolidate below the support level of 1.5266 and fall to the level of 1.5159 during this month, which is a very achievable goal, because the MACD bearish indicator still has enough force to give.

Daily chart's resistance levels: 1.5407 / 1.5506

Dailychart's support levels: 1.5266 / 1.5159

At the H1 chart, we can see that the GBP/USD had a fairly annual bearish opening, due to the strength it has seen the US dollar in recent months. Now, the GBP/USD is finding support at the level of 1.5249 in an intraday outlook, but for now, this pair could begin to form a lower low pattern.

H1 chart's resistance levels: 1.5295 / 1.5333

H1 chart's support levels: 1.5249 / 1.5198

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 1.5249, take profit is at 1.5198, and stop loss is at 1.5302.

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