GBP/USD Forex Signal - 12 January 2015
GBP/USD Signals Update
Last Wednesday’s signal was not triggered after the London Open as there was no bullish price action.
Today’s GBP/USD Signals
No signal is given today.
I am not giving a signal today as the best opportunity seems to have happened – unusually for this pair – before the London open in fact early in the Tokyo session last night, when the price returned to the flipped support to resistance zone from about 1.5187 to just above the round number at 1.5200. The price has been falling following its brief penetration into this zone, as at the time of writing early London trading seems to be confirming this direction, so it would be logical to look for a move downwards from here.
This pair of course has been in a long-term strong downwards trend, but looking at historical charts shows that this area – around the 1.5000 level down to 1.4800 – has acted as strong support, so it would not be surprising if we get a strong upwards correction from here. My colleague Christopher Lewis also sees this area as strong support. The problem is that there are no obvious flipping levels at which it makes sense to expect the price to turn. For this reason, I look to the 1.5000 level as potential support as it is a very key psychological number. However it would not be surprising if strong support was actually found below that level, as the pair might look to be an irresistible bargain in the 1.40s, attracting buyers.
There are no high-impact data releases scheduled today concerning either the GBP or the USD. It is likely to be a relatively quiet day today for this currency pair.
- Currency Pairs