On the daily chart, the pair is falling along the lower MA of Bollinger Bands, just above the lower border of a descending channel. The price remains below its moving averages that are directed down. The RSI is in the oversold zone and about to test important support level it could not overcome since June. The Composite is testing its end of December support.

GBP/USD: technical analysis


On the 4-hour chart, the pair is trading in the lower Bollinger band. The price remains below its moving averages, directed down. The RSI is in the oversold zone falling along its trendline. The Composite failed to retest its beginning of the week resistance and turned down.

GBP/USD: technical analysis

Key levels

Support levels: 1.4600 (psychologically important level), 1.4565 (April lows), 1.4344 (2010 lows).

Resistance levels: 1.4695 (local highs), 1.4950 (end of December highs), 1.5071 (EMA65).

Trading tips

Short positions can be opened from the level of 1.4555 with the target at 1.4365 and stop-loss at 1.4605. Validity – 2-3 days.

Long positions can be opened above the level of 1.4700 with the target at 1.4795 and stop-loss at 1.4674. Validity – 2-3 days. 

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

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