FX.co ★ GBP/USD intraday technical levels and trading recommendations for January 2, 2015

Overview:

The GBP/USD pair has been moving downward respecting the depicted bearish channel since mid-September when the ongoing channel was initiated.

Recently, the market failed to express bullish breakout above the price level of 1.5760 (upper limit of the daily bearish channel). 

Instead, extensive bearish breakout was applied against the price levels of 1.5540-1.5560 (this breakdown was successfully executed on December 23).

Note that DAILY fixation below the recent bottoms established around 1.5540-1.5560 renders the current consolidation range as a bearish flag pattern with potential projected target at 1.5310 (similar to what happened back in October 2014).

Key level for the current week's movement is 1.5600. Persistence below it signals more bearish dominance in the market towards the previously mentioned projection target at 1.5310.