Technical Analysis Based on Breakout – Wait for a retracement to 1.3944

GBPUSD – Flat

Wait for a retracement to 1.3944

Technical observation

On 22nd of January this year,GBP broke above a resistance line 1.3944 then retraced to it on 23rd of January ,yesterday, price rose steadily towards 1.4055 and I expect it to be corrected to 1.3944 to buy GBP towards 1.4085,incase price goes below the support line 1.3944 then I would advise you wait for a retracement to it to confirm the price is on a bearish move then short the pair towards 1.3854 or even further lower to 1.13760,if 1.3760 gets broken too then continue short to 1.3503.Currently only long position looks more ideal after a retracement of price to 1.3944.The key lines to look for on this chart are 1.3944,1.3854,1.3760 and 1.3503.

Technical levels

Resistance levels

R1.1.4017

R2.1.4001

R3.1.3991

Pivot

1.3987

Support levels

S1.1.3975

S2.1.3969

S3.1.3953

Trade signal

Wait for retracement of price to 1.3944 then buy GBP towards 1.4085 and your stop loss at 1.3914.

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