Daily analysis of GBP/USD for January 31, 2017

GBP/USD weakened across the board during Monday's session and it's challenging the 200 SMA at H1 chart, where another bullish momentum can be seen. However, recent Brexit's developments couldn't help to lift the Sterling, in order to reach new highs in the short-term. However, if the pair plummets to 1.2420 and breaks it to the downside, then we can expect another decline toward 1.2294.

H1 chart's resistance levels: 1.2534 / 1.2645
H1 chart's support levels: 1.2420 / 1.2294

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 1.2534, take profit is at 1.2645 and stop loss is at 1.2421.

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