FX.co ★ Forecast and trading recommendations on GBP/USD for January 27, 2015

The USD slips against the other major currencies. After Greece's election results, the USD took a back seat. Today, the focus has shifted to British preliminary GDP. On the USD side, consumer confidence, durable goods, and core durable orders are the key data ahead. The cable managed to close in green, but still trading at a 18-month low. The rate hike bets favors on the US dollar. The policy makers have repeatedly announced their plan to raise interest rates during 2015. But the bets on the rate hike from the BOE do not favor the Pound. This divergence can provide an optimistic view on the USD. Today, the cable opened and is trading in green. The prices are facing strong resistance at 34hrsma and the 61.8 fib level 1.5115 on the h4 chart. In case if the cable manages to breach above 1.5115, it can challenge towards 80.0 fib level at 1.5160 and the descending trend line on the h4 chart. The intraday supports are set at 1.5070, 1.5050, and 1.5030. On the h1-chart, the prices are consolidating between 1.5100 and 1.5070. The prices gave an upside breakout from a small trading range with higher lows and higher highs. In case, a h4 candle closes above 1.5115, we can expect some pullback rally covering towards 1.5160. The chances are remote. On the down side, the weakness persists below 1.5000 and the panic will be triggered below 1.4950 levels.