FX.co ★ Daily analysis of GBP/USD for December 23, 2014

On the H4 chart, the GBP/USD pair again found support at the level of 1.5589, since it had formed several fractals below the resistance level of 1.5698. Most strategists share the view that GBP/USD will continue strengthening the bearish bias to conduct a breakout at that support level with the formation of a lower low pattern and fall to the level of 1.5541.

H4chart's resistance levels: 1.5698 / 1.5811

H4chart's support levels: 1.5589 / 1.5541

During the session yesterday, the GBP/USD pair found strong resistance at the 1.5632 level. Now, this pair is trying to consolidate below the 1.5590 level to drop to the support level of 1.5534 in the medium term. For now, the GBP/USD pair has high chances of making a bearish consolidation below the 1.5534 level.

H1 chart's resistance levels: 1.5632 / 1.5686

H1 chart's support levels: 1.5590 / 1.5534

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.5590, take profit is at 1.5534, and stop loss is at 1.5650.