FX.co ★ Technical analysis and trading recommendation on GBP/USD for January 30, 2015

The Pound was rejected from 20Dsma and tumbled against the strong US dollar. The UK's annual house price growth slowed to 6.8% in January from 7.2% in December. It has slowed for the fifth month in a row. The US unemployment claims plunged, which gave strong support to the greenback. In the week ending January 24, the flash figure for seasonally adjusted initial claims was 265,000 which is a decrease by 43,000 from the previous week's revised level. This is the lowest level of initial claims since April 15, 2000. But the pending home sales data was disappointing and declined 3.7%.

As of now, this week the cable managed to hold the previous week's low at 1.4951. The cable erased half of its week's gains, trading in marginal green on a weekly basis. Today, at the Asian session the prices are facing resistance at 12ema on the H1-chart. The hourly resistance levels exists at 1.5090, 1.5115, and 1.5135. Until the prices close below 1.5135, bears have an upper hand. We can see a pullback only above 1.5165 towards 1.5200 and 1.5225. Today, the focus has shifted to US preliminary GDP data.