GBP/USD is very strong in the current bullish bias on the daily chart, which is facing now the resistance level of 1.5761 into an effort to break that zone. The rally is likely to unfold towards the 1.5881 level. Bear in mind that high hasn’t been tested since June 2015. So we should be prepared for a trading towards that level if bulls
remains alive in this strength.
On H1 chart, there is a higher high
pattern formation below the resistance level of 1.5798 and a breakout
over there will expose the pair to test the 1.5854 zone. Currently, bulls are getting favored by the momentum gained during the
rebound above the 200 SMA on this time frame. MACD indicator is
reaching an overbought area.
Daily chart’s resistance
levels: 1.5761 / 1.5881
Daily chart’s support
levels: 1.5640 / 1.5543
H1 chart’s resistance
levels: 1.5798 / 1.5854
H1 chart’s support levels:
1.5763 / 1.5715
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 1.5798, take profit is at
1.5854, and stop loss is at 1.5739.
The material has been provided by InstaForex Company – www.instaforex.com