GBP/USD analysis for January 16, 2018


Recently, the GBP/USD has been trading downwards. As I expected, the price tested the level of 1.3744. According to the 30M time – frame, I found a broken 3-day upward channel, which is a sign that buying looks risky and that sellers are in control. I also found a broken upward trendline and a hidden bearish divergence on the moving average oscillator, which are signs of weakness. My advice is to watch for potential selling opportunities. I placed Fibonacci retracement to find potential downward targets. I got FR 38.2% at the price of 1.380, FR 50% at the price of 1.3640 and FE 61.8% at the price of 1.3600.

Resistance levels:

R1: 1.3835

R2: 1.3875

R3: 1.3930

Support levels:

S1: 1.3740

S2: 1.3685

S3: 1.3640

Trading recommendations for today: watch for potential selling opportunities.

The material has been provided by InstaForex Company -