Daily analysis of GBP/USD for January 17, 2017

Following the strong bearish gap is seen on Monday's Asia opening, GBP/USD managed to recover above the 1.2000 handle and it's now being supported by the 1.2040 level. If the rebound extends in coming days, we can expect a rally's attempt toward the 1.2132 level, which is very close to the 200 SMA at H1 chart to fill the gap. MACD indicator is favoring that scenario, as it stays in the positive territory.

H1 chart's resistance levels: 1.2132 / 1.2212

H1 chart's support levels: 1.2040 / 1.2000

Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2040, take profit is at 1.2000 and stop loss is at 1.2082.