GBP/USD intraday Technical Analysis – 09 January, 2015
The GBP/USD pair has been moving downwards regarding the shown bearish channel since mid-September when the current channel was started.
In recent times, the market failed to establish a bullish breakout over the price level of 1.5760 (upper limit of the daily bearish channel). Rather, an extensive bearish pressure was established against the price levels of 1.5540-1.5560 (this breakdown was effectively executed on December 23).
A daily closure below the recent bottoms established around 1.5540-1.5560 made the previous consolidation range as a bearish flag pattern with estimated target at 1.5300. The market has already pushed further below this stage reaching down to 1.5030.
The major-support zone for today’s progress is positioned at 1.5090-1.5100. 4Hour fixation above price level of 1.5120 pauses the current bearish decline exposing price level of 1.5260, 1.5370 and 1.5410.
Still, at such strong bearish trend, you should keep in mind that persistent fixation below 1.5100 signals more bearish tendency of the market, maybe new lows below 1.5030 are going to be hit.