Daily analysis of GBP/USD for February 01, 2017

The pair had a bullish momentum dominating its overall bias during Tuesday, as it managed to rebound above the support zone of 1.2420 and the 200 SMA at H1 chart. Next target to the upside is placed around 1.2645, where a breakout higher should expose the 1.2718 level. Yesterday's move gave us a good idea of what could happen after Thursday's BoE meeting, but dovish words should weigh on GBP/USD in order to re-test the 1.2400 handle.

GBPUSDH1.png

H1 chart's resistance levels: 1.2645 / 1.2718

H1 chart's support levels: 1.2527 / 1.2420

Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.2645, take profit is at 1.2718 and stop loss is at 1.2576.

The material has been provided by InstaForex Company - www.instaforex.com
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