FX.co ★ GBP/USD intraday technical levels and trading recommendations for January 7, 2015

Overview:

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

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

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

A daily closure below the recent bottoms established around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with potential projected target at 1.5300.

The key level for today's movement remains around 1.5200. Persistent fixation below it signals more bearish dominance towards the lower limit of the movement channel around 1.5130 and probably 1.5100.

On the other hand, four-hour fixation above price level of 1.5200 pauses the current bearish decline exposing price level of 1.5260, 1.5370 and 1.5410.