In long-term trends, we see 1.45 handle as a ceiling for this market, and with that being the case we have no interest in buying it. We believe that resistive candles on rallies would offer selling opportunity, and that given enough time pair will test 1.40 handle as a support.
Last modified on Friday, 29 January 2016GBP/USD Weekly Forecast – 01 February – 05 February
Sterling tried to rally in the course of the last week, supported by good UK job figures and dovish FOMC statement but found area around 1.44 handle to be too resistive at the moment in order to pull back to 1.42 handle by the ending of the week. This is the sign that British pound is generally weak at the moment, since weekly candle is a shooting star. As for next week, pair is likely to find support around 1.41 handle, while we can expect resistance above 1.4350 area so these would be our short-term buying and selling points.
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