05.02.201511:18 Forex Analysis & Reviews: Technical analysis of GBP/USD for February 5, 2015

General overview for 05/02/2015 12:30 CET

Both of the yesterday's support levels have been violated, yet the market has bounced up to the level of 134.48 so far, and currently it is trading inside the neutral zone. Only a sustained breakout above the level of 135.34 should be considered as bullish and the target level of 137.64 should be watched then. Otherwise, there is a chance that the wave (c) blue has been completed, and market might sharply reverse down. Breakout below the intraday support at the level of 132.29 opens the road to test the swing lows at the level of 130.14.

Support/Resistance:

130.14 - Swing Low

130.39 - WS1

132.29 - Intraday Support

132.37 - Weekly Pivot

134.59 - WR1

135.34 - Intraday Resistance

Trading recommendations:

Daytraders should consider opening sell orders from the current price levels with SL above the level of 135.34 and TP at the level of 132.29 with a possible extension to the level of 130.14 on Friday.