FX.co ★ Technical analysis of GBP/USD for January 27, 2015

Overview:

• The market of GBP/USD showed signs of instability. The trend movement was controversial as it took place in a narrow sideways channel. Due to the previous events, the price is still between the levels of 1.5147 and 1.4950, so it is recommended to be careful while making deals in this area. Therefore, it is necessary to wait untill the sideways channel is passed through. Then the market will probably show signs of a bullish trend. In other words, buy deals are recommended above 1.4950 (represents the double bottom on the H1 chart) level with their first target at the level of 1.5077. From this point, the pair is likely to begin an ascending movement to the point of 1.5110 and further to the level of 1.5147. But it should be noticed that the level of 1.5147 will form a strong resistance which coincides with the ratio of 61.8% Fibonacci retracement levels at the same time frame. However, if the pair fails to pass through the level of 1.5147, the market will indicate a bearish opportunity below the strong resistance level of 1.5150. Regarding this, sell deals are recommended lower than the 1.5147 level with the first target at 1.5050 (the weekly pivot point). It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.4966.