GBP/USD Weekly Technical Report 21-25/1/2013

The pair dropped sharply benefiting from stability below the key upside support level that turned into a resistance level. The pair neared 1.5825 levels which are considered an important barrier in front of another strong bearish wave. Linear Regression Indicators are showing negativity, and despite that Stochastic is showing oversold signals, we still think that trading below 1.6000 levels is considered negative and might push the pair further to the downside.

The trading range for this week is among key support at 1.5525 and key resistance at 1.6065.

The general trend over short term basis is to the downside targeting 1.6875 as far as areas of  1.4225 remains intact.

Support 1.5825 1.5790 1.5730 1.5690 1.5635

Resistance 1.5880 1.5910 1.5975 1.6000 1.6020

Recommendation Based on the charts and explanations above, our opinion is selling the pair below 1.5910 targeting 1.5825, 1.5730 then 1.5635 and stop-loss with four-hour closing above 1.6020 might be appropriate this week