Daily analysis of GBP/USD for January 23, 2018

GBP/USD started the week within a neutral tone that is favored by the bulls in the short term. The next target to the upside lies at 1.3979, where a breakout should expose the critical level at 1.4112. The support zone of 1.3847 still holds as a solid barrier to contain the bearish price action but if it gives up, then the next leg lower could go towards the 200 SMA on H1 chart.

1516644876_GBPUSDH1.png

H1 chart's resistance levels: 1.3979 / 1.4112

H1 chart's support levels: 1.3847 / 1.3612

Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.3979, take profit is at 1.4112 and stop loss is at 1.3847.

The material has been provided by InstaForex Company - www.instaforex.com