GBP/USD intraday technical analysis and trading recommendations for January 25, 2013
The GBP/USD pair started the new year with a sharp bullish move above 1.6300. As we see on the daily chart, the last push has ended up expressing significant bearish price action indicating a false break above 1.6300 establishing a significant resistance zone.
Price levels 1.6115, 1.6080, and 1.6000 have been broken down confirming the bearish bias for the pair; these levels were lost as support triggered considerable bearish momentum which was apparent on Friday.
It is important to note that the pair has already broken down a long-term uptrend line that came to meet the pair around 1.6000, the loss of which opens the way towards 1.5910 then 1.5800.
The pair was trapped within narrow range 1.5800 – 1.5890 after finding temporary support at psychological level 1.5800. However, bearish breakout took place Yesterday opening the way towards projection target around 1.5725.
Losing 1.5800 level the pair will probably accelerate bears towards 1.5750 and 1.5720.
The material has been provided by Instaforex Company – http://www.instaforex.com/