GBPUSD under the negative pressure – Analysis - 09-01-2017

The GBPUSD pair traded with clear negativity in last Friday afternoon to break 1.2339 level and settles below it, providing signals for the price attempt to resume the main bearish trend, but it faces a bullish support line now at 1.2200 and it might allow the price to return to the bullish correctional track that faces its next target at 1.2550.

Therefore, we prefer staying aside temporarily in order to monitor the price behavior according to the next trend that represented by 1.2200 support and 1.2339 resistance, where the price needs to breach one of them to detect its next trend clearly, pointing that breaking the mentioned support will confirm the continuation of the negative pressure and heading to the previously recorded bottom at 1.1997 as a next main station, while breaching the resistance will lead the price to recover and test 1.2550 initially.

The contradiction between stochastic positivity and the EMA50 negativity provides another reason for the neutrality.

Expected trading range for today is between 1.2120 support and 1.2350 resistance.

Expected trend for today: Depends on the above mentioned levels