FX.co ★ Technical analysis of GBP/USD for January 30, 2014

Technical outlook and chart setups:

1. The GBP/USD pair seems to have hit a major resistance at 1.6600 recently. It has turned back sharply since then and trading at sub 1.6500 at the moment. It is recommended to initiate short positions now, risk remains at 1.6600.

2. Resistance is fixed at 1.6600, while supports are spread through 1.6300, followed by 1.6200, 1.59 and lower respectively.

3. The structure reveals that a major top could have been in place at 1.6600 levels and prices are heading towards downside extensions at sub 1.6200.

Trading recommendations:

Initiate short positions, stop at 1.6600, target 1.6200.

Good luck!