Daily analysis of GBP/USD for February 01, 2016

We should note that during the last Friday session a double top pattern was formed and after it we saw a huge decline towards the support level of 1.4198. That move told us that the bearish bias has been resumed in a short-term basis. A breakout below the level of 1.4198 will expose the cable towards 1.4098, where a key inflection area was formed during the session on January 21. The MACD indicator is reaching an oversold condition and we may see some rebounds in coming hours.


H1 chart's resistance levels: 1.4309 / 1.4373

H1 chart's support levels: 1.4198 / 1.4098

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 found at 1.4198, take profit is at 1.4098, and stop loss is at 1.4298.

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