A daily chart is still showing a lower low pattern formation, as the pair remains below the resistance level of 1.5346. Now, we are expecting a lower continuation, because that resistance is very strong and the bearish bias is likely to start dominating the trend in the GBP/USD pair again. The MACD indicator is entering oversold territory.
At the H1 chart, the support zone
of 1.5259 remains very solid, because the pair was rejected at that
level. Now it's trying to break the resistance level of 1.5358. The next higher target is seen at 1.5428 level, which is
above the 200 SMA. However, that moving average could act as dynamic
resistance levels: 1.5346 / 1.5543
support levels: 1.5199 / 1.5090
H1 chart's resistance
levels: 1.5358 / 1.5428
H1 chart's support levels:
1.5259 / 1.5158
Trading recommendations for today: Based on the H1 chart,
place sell (short) orders only if the GBP/USD pair breaks a bearish
candlestick; the support level is at 1.5259, take profit is at
1.5158, and stop loss is at 1.5358.
The material has been provided by InstaForex Company – www.instaforex.com