FX.co ★ Daily analysis of GBP/USD for January 29, 2016

The cable recovered above the 200 SMA at H1 chart after it had gained a momentum during the Thursday's session. Currently we're seeing a higher high pattern formation below the resistance at 1.4373, and the pair is likely to break it above. Then it is expected to rally towards the next inflection area formed during the January 13th session, around the 1.4467 level. MACD indicator is reaching overbought territory, so we'll be able to see some pullbacks in coming hours as the overall bearish structure cannot be discarded yet.

H1 chart's resistance levels: 1.4373 / 1.4467

H1 chart's support levels: 1.4309 / 1.4198

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 1.4309, take profit is at 1.4198, and stop loss is at 1.4417.