On the daily chart, the price action is calling for more upside above the 200 SMA and the nearest target is located around the level of 1.5755, which is a strong resistance zone. However, don't forget the GBP/USD pair could start to do corrective moves in the short term, because we have been watching a
very strong bullish trend development over the last days.
There is an interesting
bullish structure formed on the H1 chart, because the pair has been
trading higher above the support level at 1.5610. We expect a
breakout of the resistance level at 1.5671 in order to reach the next
high around 1.5721. The MACD indicator is entering in the negative territory and the 200 SMA is still bullish.
resistance levels: 1.5755 / 1.5898
support levels: 1.5543 / 1.5346
H1 chart's resistance
levels: 1.5671 / 1.5721
H1 chart's support levels:
1.5610 / 1.5548
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 1.5671, take profit is at
1.5721, and stop loss is at 1.5621.
The material has been provided by InstaForex Company – www.instaforex.com