There is still a battle between bulls and bears inside the range of 1.5640 – 1.5543 on the daily chart. That is why we still expect strong reaction when a breakout happens around the resistance level of 1.5640. That
would open the next higher target until the level of 1.5777. The MACD
indicator is still at neutral territory.
GBP/USD still moving to the dynamic support at 200 SMA where it should make a rebound in order
to ride the current bullish bias and reach new highs. Still we are
expecting a breakout over the resistance level of 1.5633. If that
happens, then the pair will reach the 1.5664 zone. This would be
invalidated by a breakout of a low hit back on July 31.
resistance levels: 1.5640 / 1.5777
support levels: 1.5543 / 1.5450
H1 chart’s resistance
levels: 1.5633 / 1.5664
H1 chart’s support levels:
1.5587 / 1.5562
Trading recommendations for today: Based on the H1 chart,
place buy (long) orders only if the GBP/USD pair breaks a bullish
candlestick; the resistance level is at 1.5633, take profit is at
1.5664, and stop loss is at 1.5602.
The material has been provided by InstaForex Company – www.instaforex.com