16.01.201709:30 Forex-elemzések és áttekintések: Intraday technical levels and trading recommendations for GBP/USD for January 16, 2017

The price zone between 1.3845 and 1.3550 (historical bottoms set in January 2009) was considered a significant demand zone to be watched for bullish recovery.

However, by the end of June a significant bearish break below 1.3550 was expressed as seen on the depicted charts (fundamental reasons). Bearish persistence below the demand level at 1.3550 enhanced the bearish scenario toward the price levels around 1.2700 (Bearish projection target).

Since then, the GBP/USD pair has been trapped inside the depicted consolidation range above 1.2700 until a bearish breakout took place on October 6.

Daily persistence below 1.2700 confirmed the bearish Flag pattern. That is why, a bearish projection target would be located around 1.2020.

Recently, bullish recovery was manifested around 1.2080. That is why, a bullish pullback was executed toward 1.2700-1.2750.

Risky traders considered the recent bullish pullback toward the price zone of 1.2700-1.2750 to be a valid SELL entry. S/L should be lowered to 1.2400 to secure profits.

Note that successive lower highs were established around the price levels of 1.2700 and 1.2400. These may generate significant bearish pressure against the demand level of 1.2000.

Price action should be watched around the current demand level of 1.2000 for bullish rejection. Otherwise, the next bearish destination would be located around 1.1200 (Fibonacci Expansion 100%).