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.


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