FX.co ★ Daily analysis of GBP/USD for January 20, 2017

The pair holds gains above the 200 SMA on H1 chart, but the upside is limited by the strong resistance at the 1.2343 level. If GBP/USD attempts a rally above that area, we can expect a re-test of January 18th highs around 1.2416. However, the Cable is still within a very complex structure for the short term, as it's trapped inside a wide sideways range.

H1 chart's resistance levels: 1.2343 / 1.2416

H1 chart's support levels: 1.2371 / 1.2291

Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.2343, take profit is at 1.2416 and stop loss is at 1.2268.