FX.co ★ GBP/USD intraday technical levels and trading recommendations for January 31, 2014

GBP/USD had been trapped inside a wide-ranged price zone extending between 1.5900 and 1.6250 until November 27 when a bullish breakout took place.

Since then, the bulls have been defending 1.6250 as a prominent support. Another successful bullish retesting took place in mid-December that pushed the pair again to the upside.

Based on this bullish breakout, the GBP/USD pair had a projection target around 1.6630 which acts as a prominent resistance for the pair.

As suggested, the bearish reversal was initially expressed at retesting of 1.6660 on January 24.

Bullish momentum manifested itself through the current week's consolidations until bearish rejection was expressed on retesting of 1.6620 on Tuesday.

The pair declined about 160 pips reaching a prominent support level located at 1.6450.

As expected Yesterday, bullish reversal off 1.6450 pushed the pair towards 1.6490-1.6500 before further bearish movement took place to push again towards 1.6450.

For today's consolidations, 4H-hour stabilization below price level of 1.6440-1.6400 is mandatory for further decline to take place.

4H closure below 1.6400 probably indicates another bearish impulse towards 1.6390 then probably 1.6310.