GBP/USD: pair in correction on January 22, 2016

January 22, 2016

Current trend

Yesterday the pair strengthened a little, however, managed to renew its 2009 lows during the trading session. The pair was supported by poor data on the US labour market. The number of Initial Jobless Claims for the week ending 15 January unexpectedly grew from 283 to 293 thousands, while economists predicted a fall to 278 thousands.

Support and resistance

Bollinger Bands on the daily chart is moving down while the price range is narrowing from the bottom. MACD is growing and giving a moderate buy signal. Stochastic left the oversold zone and growing.

The indicators recommend waiting for clearer trading signals.

Support levels: 1.4200 (local low), 1.4150, 1.4079 (local low), 1.4000 (psychologically important level).

Resistance levels: 1.4248 (local high), 1.4300, 1.4351 (15 January high), 1.4450, 1.4530, 1.4600 (11 January high), 1.4662, 1.4700.

Trading tips

Long positions can be opened after the breakout of the level of 1.4300 with the target at 1.4550 and stop-loss at 1.4260. Validity – 2-3 days.

Short positions can be opened after the price rebound from the level of 1.4266 with targets at 1.4150, 1.4100 and stop-loss at 1.4300. Validity – 1-2 days.

Publication source
LiteForex information  LiteForex reviews

February 17, 2017
Golds rally may falter
The gold price has racked up its 2nd straight day of gains today on the back of US dollar weakness and doubts over an interest rate hike next month from the US Federal Reserve...
February 16, 2017
Where is black gold heading?
The Euro is slowly going down and this is not brought on by the Eurozone situation. Instead, this is fueled by the U.S. Dollar. Yesterday, Janet Yellen gave a speech in the Senate Banking Committee emphasising the fact that it Is not quite right to use the wait-and-see stance regarding the interest rate hike...
February 14, 2017
Will France exit the euro?
The Euro has come under pressure late in the European session today, after analysts warned of the huge costs that France would face should they decide to ditch the European currency...

FXCM Rating
FxPro Rating
Tickmill Rating
OANDA Rating
Vantage FX Rating
Cms Trader Rating

OptionTrade Rating
UKoptions Rating
Dragon Options Rating
OptionRally Rating
365BinaryOption Rating
Anyoption Rating