FX.co ★ Technical analysis of GBP/USD for February 11, 2015

Overview:

• Yesterday, the GBP/USD pair has an upside movement from the level of 1.5192 to 1.5269, and today the market has opened at 1.5270. Putting it simply, the uptrend represents the double bottom of the channel emerging at the level of 1.5250. It is equally important that the RSI is still positive on the daily frame, so it calls for a new uptrend. Additionally, a strong support is set at the level of 1.5250 on the H4 chart. Therefore, the price movement will be between 1.5250 and 1.5368 (50% of Fibonacci retracement levels at the same time frame). Moreover, the pair has already formed the major support at the level of 1.5553. Consequently, the market will indicate a bullish opportunity at level of 1.5553 with a first target at 1.5313. Then, if it breaks the level of 1.5313,a breakout above this level with a second target at 1.5368 will be seen (note that the weekly resistance 1 will be set at the level of 1.5402). However, the best location for placing a stop loss should be below 1.5205.