Weekly Technical Outlook: GBP/USD; Market Forecasts for January 16th – January 20th

• Resistance level 1.22388
• Pivot Level 1.2185
• Support Level 1.203358, 1.191482 and 1.184696

Technical Analysis

Daily bias in GBP/USD remains bearish with 1.22388 resistances intact and deeper decline is still expected for the pair as long as resistance holds the area.

The price action stays below resistances so far at this point and such a decline is viewed as a correction.

Thus, we’d expect resistance to hold the area and pair remains bearish with week end closing indicating a bearish reversal on the pair which has an outlook to continue with the downside bias price action.

The price action signals a pin bar indicating a reversal bearish movement with rejection at resistance area closed below the trend line and stochastic oscillator at 31.0 levels.

With the pair closing below the rejection of trend line, there is clear indication of trend reversal shifting the momentum.

Current development suggests that the medium term downside is expected to be further low and focus shall be at 1.203358 levels. When there is a break in this level, it should make lower lows with 1.91482/1.184696 levels.

Economic

• Right move House Price Index, Producer Price Index, PPI Core Output
• RICS Housing Price Balance, Retail Sales
• Consumer Price Index, Fed’s Monetary Policy Statement and press conference, Fed’s Beige Book
• Fed’s Yellen Speech, Building Permits Change, Initial Jobless Claims
• FOMC Member Harker Speech

Area of Interest

• Strong resistance at 1.22388 area and closed below resistance levels.
• Bearish reversal strongly closing below the rejection of trend line with pin bar signal.
• Price action closed below trend line and oscillator below 31.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

For more detailed analysis from the author, please visit NoaFX.