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Daily analysis of GBP/USD for January 05, 2016

GBP/USD current intraday structure is still favored to the downside, but be aware of a possible double bottom pattern around the 1.4702 level. A rebound is expected to test the resistance zone of 1.4802 before any declines during the week. However, we should see a decline towards the support level of 1.4608 in a short-term basis. MACD indicator is entering neutral territory.

1451944735_GBPUSDH1.png

H1 chart's resistance levels: 1.4802 / 1.4918

H1 chart's support levels: 1.4702 / 1.4608

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 1.4702, take profit is at 1.4608, and stop loss is at 1.4793.

The material has been provided by InstaForex Company - www.instaforex.com