23.01.201505:08 Forex Analysis & Reviews: Daily analysis of GBP/USD for January 23, 2015

Long-term review

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On the daily chart, we can see a dominant bearish trend on the GBP/USD pair, because during yesterday's session, this pair fell to the support zone of 1.5025. This could activate massive sell orders in the medium term, because the GBP/USD pair has already completed the formation of a lower low pattern. The MACD indicator is entering the neutral zone.

The GBP/USD pair did a pullback at the 200 SMA on the H1 chart and the bearish bias is currently doing a clear domination of the pair's trend, at least in a short-term basis. The GBP/USD pair is trying to develop a bearish pattern above the psycological level of 1.5000, where this pair needs to do a breakout to fall until the support level of 1.4927, that could be a good trade because of the trend-following trading's motto.

Daily chart's resistance levels: 1.5247 / 1.5424

Dailychart's support levels: 1.5025 / 1.4821

H1 chart's resistance levels: 1.5084 / 1.5128

H1 chart's support levels: 1.5000 / 1.4927

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 1.5000, take profit is at 1.4927, and stop loss is at 1.5073.

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