GBP/USD is still trading higher, but currently is doing a pullback to the level of 1.5800. Now, the pair could start to form a bullish pattern on the daily chart. However, we’re still thinking about the possibility of a turning lower in this zone, because the overall trend (in major timeframes) is still bearish and GBP/USD could find dynamic resistance at this point.
The H1 chart is showing a strong rejection at the resistance level of 1.5794 and that’s why we expect some falls at the start of the week. Currently, trading against the H1 chart trend could be short with a breakout at the support level of 1.5706, with a target at the level of 1.5597, which is located near to the 200 SMA.
resistance levels: 1.5907 / 1.6060
support levels: 1.5745 / 1.5543
H1 chart’s resistance
levels: 1.5794 / 1.5882
H1 chart’s support levels:
1.5706 / 1.5597
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 1.5794, take profit is at
1.5882, and stop loss is at 1.5706.
The material has been provided by InstaForex Company – www.instaforex.com