FX.co ★ Technical analysis of GBP/USD for February 5, 2014

Trading recommendations: 

• According to the previous events, the GBP/USD pair is still trapping between 1.6370 and 1.6300. 
• Sell below 1.6390 with the first target at the 1.6344 price, then It will call for downtrend in order to continue its bearish movement towards 1.6265 in order to test this strong support (it should be noted that the price of 1.6257 is going to form double bottom). At the same time, the stop loss should be placed at the level of 1.6420. 
• Buy above 1.6266 (if the trend fails to close below it) with target at 1.6350, then at the price of 1.6385.

Notes: 

• Daily range: 87 pips. 
• Volatility: 141,81. So, the market indicates the higher volatility today. 

Intraday technical levels:

Date: 5/02/2014 

Pair: GBP/USD 

• R3: 1,6382 
• R2: 1,6363 
• R1: 1,6295 
• PP: 1,6276 
• S1: 1,6208 
• S2: 1,6189 
• S3: 1,6121