FX.co ★ GBP/USD intraday technical levels and trading recommendations for January 9, 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 pressure 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 projected target at 1.5300. The market has already pushed further below this level reaching down to 1.5030.

The key-support zone for today's movement is located at 1.5090-1.5100. Four-Hour fixation above price level of 1.5120 pauses the current bearish decline exposing price level of 1.5260, 1.5370 and 1.5410.

However, at such strong bearish trend, you should note that persistent fixation below 1.5100 signals more bearish tendency of the market, probably new lows below 1.5030 are going to be hit.