There is bullish momentum again on the GBP/USD structure on the daily chart because the pair is trying to break the resistance level of 1.5238 and if it is successful, it would be expected to rally until the level of 1.5371. We could
be in front of a bullish development for the medium term as GBP/USD will try to reach again the 200 SMA.
consolidation still takes place on the H1 chart because GBP/USD is forming a
lower low pattern below the 200 SMA, but it could fail. Remember the
support zone of 1.5102 is very strong and the overall bias on this
pair is still calling for upside moves. Furthermore, GBP/USD could
break the resistance level of 1.5217.
resistance levels: 1.5238 / 1.5371
support levels: 1.5007 / 1.4874
H1 chart’s resistance
levels: 1.5266 / 1.5313
H1 chart’s support levels:
1.5217 / 1.5155
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 1.5266, take profit is at
1.5313, and stop loss is at 1.5222.
The material has been provided by InstaForex Company – www.instaforex.com