Overview :
- Bearish outlook for January 9, 2015.
- According to the previous events, the price of GBP/USD pair has still been trapped between 1.5178 and 1.5041. The level of 1.5178 is representing strong resistance. Also, it should be noted that the price of 1.5178 is coinciding with the ratio of 23.6% Fibonacci retracement levels. The minor support has set at the level of 1.5041 (it represents the double bottom). Hence, we expect a range about 85 pips. Therefore, the market is going to call for a downtrend from the level of 1.5178. Thus, sell below the level of 1.5178 in the short term with the first target of 1.5041. It could resume to 1.5003 if the trend is able to break the 1.5041 level.
Observations :
- Major support will set at 1.4936.
- The level of 1.5083 is representing the daily pivot point.
- Major resistance has already set at the price of 1.5178.
- It should be noted that the weekly range is not very large this week.
- According to our statistics, the range was between 65 pips and 93 pips daily.
Note :
- Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account. Fibonacci is in a range trade; it looks like the trend is trapped and going up or down. If you sell or buy in the long term in this period, you will surely lose your profit.
The material has been provided by InstaForex Company - www.instaforex.com
