FX.co ★ Technical analysis of GBP/USD for December 19, 2014

Overview:

• According to previous events, the resistance of the GBP/USD pair has been already set at the level of 1.5755. Furthermore, the weekly support 1 sets at the level of 1.5585. But it should be noted that support has been broken and turned to resistance around the area of 1.5755. Equally important, the weekly support 2 has been set at the level of 1.5800 today. Accordingly, the price of the GBP/USD pair has been moved between 1.5750 and 1.5605; thus, it is reasonable to be careful with action around this area. Also, it should be noted that the range today will be more than 90 pips. As a result, the trend in H4 chart is going to call for a bearish market at the levels of 1.5800 or 1.5755. Thereupon, it looks for further downside move below 1.5755 with targets at 1.5665 and 1.5585 (the weekly support 1). On the other hand, buy above the price of 1.5585 with the first target at 1.5693. It might resume to 1.5760 in order to test the first resistance. 

Notes:

• Major supports for December 19, 2014: 1.5617 and 1.5585.
• Major resistances for December 19, 2014: 1.5755 and 1.5800.
• We expect a range about 90 pips today.