Technical Analysis Based on Breakout – Wait for a pullback to (1.3942-1.3914)

GBPUSD – Flat

Wait for a pullback to (1.3942-1.3914)

Technical observation

On 22nd of January this year, price broke above a resistance zone (1.3942-1.3914) and is still pretty much above it. Currently price is pulling back to the zone and were expecting a bounce from it to enter long position with our ultimate target at 1.4035 or even higher. On the 4H chart above this is a good buy zone and as long as price remains above it we expect a decline of price to it and a bounce from it to buy GBP with my take profit at 1.4035 and stop loss at 1.3885.Unless there’s a clear breakout below (1.3942-1.3914),we remain reluctant to short this pair.

Technical levels

Resistance levels

R1.1.4017

R2.1.4001

R3.1.3991

Pivot

1.3985

Support levels

S1.1.3975

S2.1.3969

S3.1.3953

Trade signal

Wait for a retracement to( 1.3942-1.3914) then buy GBP with your take profit at 1.4035 and stop loss at 1.3885

FreshForex cancels commissions!

You may check other analytical reviews on FreshForex website. Source: freshforex.com.