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Daily analysis of GBP/USD for January 08, 2016

There is a bullish recovery above the support zone of 1.4555, after a strong decline held by GBP/USD since the start of the year. Currently, we can expect a testing of the resistance level of 1.4702, which is very close to the 200 SMA price area, but the bears are still getting favored by the overall fractal structure on the Cable. MACD indicator is at positive territory.

GBPUSDH1.png

H1 chart's resistance levels: 1.4608 / 1.4702

H1 chart's support levels: 1.4555 / 1.4464

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 1.4555, take profit is at 1.4464, and stop loss is at 1.4643.

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