GBP/USD 1.3690 - 23 January

GBP/USD Open 1.3868 High 1.3971 Low 1.3637 Close 1.3873

The Pound/Dollar went into consolidation phase after the strong decline of 19 January, but today the descending continued. On the 4 hour chart we see a trading range formed 1.3637 - 1.4026. Graphic formation is with growing bottoms, which means possible test of the upper limit of the consolidation area at 1.4023. In such scenario an ascending triangle would be created with growth potential. Targets upwards are 1.4140, followed by 1.4300. Short term support levels are 1.3635, followed by 1.3500. Break down of the formation may continue towards 1.3100. The likelihood the pair to find bottom at any of the above levels is very high.In the longer term corrective movements will lead to levels around 1.5200, followed by 1.6090. Uncertainty in the banking sector in the UK continues, which may lead to serious volatility. This is the time to swing trade with potential for serious profits implementation.

Technical resistance levels: 1.4045 1.4275 1.4500

Technical support levels: 1.3635 1.3500 1.3370

Trading range: 1.3700 - 1.3630

Trend: Downward

Sell at 1.3690 SL 1.3720 TP 1.3640

Today we made already +42 pips profit on GBP/USD from the following signal:

5:48 GMT Sell GBP/USD at 1.3775 SL 1.3801 TP 1.3715 exited at 6:20 GMT

Today so far +146, yesterday +157, as shown at