GBP/USD was moving in a bearish trend during yesterday's session as we can see on daily chart. Now it's looking for an opportunity to fall to the 200 SMA. Anyway, if that happens, GBP/USD will remain bullish in our mid-term outlook as long as it stays above that moving average. However, if the pair does a breakout at the resistance level of 1.5775, it will reach the level of 1.5898.
The support level of 1.5687 continues to be a strong intraday bottom, because GBP/USD is looking for an opportunity to head upside as 200 SMA in the H1 chart remains bullish. There is a possible bearish formation because the pair will try to break the support zone of 1.5687 to reach the next low around the level of 1.5650.
resistance levels: 1.5755 / 1.5898
support levels: 1.5543 / 1.5450
H1 chart's resistance
levels: 1.5740 / 1.5789
H1 chart's support levels:
1.5687 / 1.5650
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 1.5740, take profit is at
1.5789, and stop loss is at 1.5693.
The material has been provided by InstaForex Company – www.instaforex.com