Technical analysis of GBP/USD for February 05, 2018

1517819225_GBPUSDH1.png

Overview:

  • The GBP/USD pair was dialectical as it was trading in a narrow sideways channel, the market showed signs of instability.
  • Amid the previous events, the price is still moving between the levels of 1.4217 and 1.4044. Resistance and support are seen at the levels of 1.4217 (also, the double top is already set at the point of 1.4347) and 1.4044 respectively.
  • Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed. The current price is seen at 1.4115 which represents a key level today. The level of 1.4217 will act as the first resistance today.
  • Hence, if the pair fails to pass through the level of 1.4217, the market will indicate a bearish opportunity below the strong resistance level of 1.4217. Sell deals are recommended below the level of 1.4217 with the first target at 1.4044.
  • If the trend breaks the support level of 1.4044, the pair is likely to move downwards continuing the development of a bearish trend to the level 1.3970.
The material has been provided by InstaForex Company - www.instaforex.com