The GBPUSD pair tried to continue higher on the 25th of January but profit takers forced price lower under the rising resistance trend line at 1.42000. The 1.43450 area was the extent of gains made so far, but support at 1.40000 has been confirmed, leaving a good level to position against. The 4-Hour moving averages are rising to support the price and the nearest is the 50-period MA at 1.40955. The 100-period MA is below trend line support at 1.40680 and is located at 1.39600. The 200-period MA in the 4-Hour timeframe is found at 1.37753, but support at 1.38354 would have to be lost in order for it to be retested in the near future.
The pair does seem to be forming a small bear flag, but until this is broken and triggered the trend and the bias remains, with a move higher targeting the recent highs at 1.44000 and beyond.
The British Index has fallen back from the 7800.00 area and is currently holding above support at 7500.00. The low today, so far, has been 7515.30, just above support at 7511.20, which was a previous resistance turned support area. Below this, 7430.00 comes into play followed by the 7400.00 level.
Resistance overhead is found at 7563.60, which has been tested earlier today. The 7600.00 level is a confirmed resistance with the 4-Hour moving averages above it and falling. Capping this zone is 7660.50 and a break above here would see bearish positions come under pressure, confirmed by a close above 7708.9. Upside targets then become 7746.4, the high at 7800.00 and 7860.00 in extension.