FX.co ★ Daily analysis of GBP/USD for January 22, 2015

The GBP/USD pair had a non-volatile reaction during yeserday BoE's dovish minutes, as this pair remains inside the range between the 1.5247 and 1.5025 levels on daily chart. Also, the GBP/USD pair is still holding the medium-term targets at the support levels of 1.5025 and 1.4821, because the pair continues to form a bearish pattern on this timeframe.

According to the intraday outlook, the GBP/USD pair worked well on our trading idea with a breakout at the support level of 1.5128 with the target at 1.5084. But during the first hours of the American session, the GBP/USD pair did a rebound at that support level. Now, this pair is consolidating again above the 1.5128 level. In the near term, the pair could rise until the resistance level of 1.5169, where the 200 SMA is located on H1 chart.

Daily chart's resistance levels: 1.5247 / 1.5424

Dailychart's support levels: 1.5025 / 1.4821

H1 chart's resistance levels: 1.5169 / 1.5251

H1 chart's support levels: 1.5128 / 1.5084

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 1.5128, take profit is at 1.5084, and stop loss is at 1.5172.