In January, the British currency reached lowest levels since 1985, but strengthening under the bottom from 2001 could not be accomplished, and the currency couple closed the month practically unchanged. Last week the Cable continued its correction, leaving most of the losses from the first half of January. The weekly chart a divergence is formed , which carries a risk of correctional growth for the Pound. At the same time decreasing pressure remains strong, while the Sterling is under 1.4980, and the risk of resuming the downward trend remains. On the daily chart the British currency formed convergence and corrected. Of the four hour chart we have ascending channel and the descending trend line was penetrated upwards. Bearish scenario is still valid with targets towards the area of 1.4300. The CCI indicator just went down the 100 line on the 1 hour chart, suggesting potential decreasing pressure with testing of 1.4730.
Technical resistance levels: 1.4875 1.4610 1.4725
Technical support levels: 1.4625 1.4500 1.4390
Trading range: 1.4745 - 1.4820
Buy at 1.4759 SL 1.4729 TP 1.4809
Today we made already +50 pips profit on GBP/USD from the following signal:
5:48 GMT Sell GBP/USD at 1.4750 SL 1.4776 TP 1.4690 exited at 6:12 GMT
Today so far +174, on Friday +142, as shown at www.zifx.com/performance.php