Overview:

• The resistance of the GBP/USD pair has already set at 1.5635 (50% of Fibonacci retracement levels). Moreover, the double top sets at the level of 1.5666. According to the previous events, the GBP/USD pair has still been moving between 1.5635 and 1.5533. It should be noted that the market was closed on January 1, 2015; so we expect a large range of 105 pips today because resistance stood at 1.5635. Therefore, it will be quite profitable to sell below this level (1.5635) for retesting this level in the short term. Hence, sell deals are recommended below the level of 1.5635 with targets at 1.5533 (the level of 1.5533 is representing the first support) and 1.5520 to reach the second support. On the other hand, the stop loss should never exceed your maximum exposure amounts, consequently it should be placed above the double top at the price of 1.5684.

Notes:

• We expect a new range up to 110 pips.
• Strong support level will be formed at the price of 1.5520 today.
• The value of 50% Fibonacci retracement levels has set at the 1.5635 level. The level of 1.5635 is the key level to confirm the bullish market.