The GBP/USD pair is still trading higher and it's looking to do a mid-term consolidation above the 200 SMA on the daily chart. That's why short trades are not advised at this stage. Also, we should wait for a test at the resistance level of 1.5755, where the cable could turn into the bearish bias again in
the medium and long term.
If we do an extensive
analysis at the H1 chart, we can notice a bullish trendline following,
which is helping the GBP/USD pair stay alive in the upside above the
200 SMA. The short-term outlook is still bullish and a breakout at
the resistance level of 1.5610 will help the pair test the next
resistance around the level of 1.5671.
resistance levels: 1.5755 / 1.5898
support levels: 1.5543 / 1.5346
H1 chart's resistance
levels: 1.5610 / 1.5671
H1 chart's support levels:
1.5548 / 1.5502
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 1.5610, take profit is at
1.5671, and stop loss is at 1.5548.
The material has been provided by InstaForex Company – www.instaforex.com