The pair remains alive on the downside risk in the daily chart, because there is no bullish price action favored at this time and the current structure seems to be telling us about a corrective move in favor of the upward trend. However, GBP/USD could have another push lower, at
least until the support level of 1.5346, in the medium term.
During the yesterday session,
GBP/USD recovered from losses almost to the level of 1.5443, after the
FOMC’s meeting minutes, which didn’t have a huge impact on the major pairs. Because of it and the lack of momentum, GBP/USD could
do a pullback at the 200 SMA on the H1 chart. So, be cautious when putting
short-term long trades.
resistance levels: 1.5543 / 1.5745
support levels: 1.5346 / 1.5199
H1 chart’s resistance
levels: 1.5597 / 1.5670
H1 chart’s support levels:
1.5513 / 1.5443
Trading recommendations for today: Based on the H1 chart,
place sell (short) orders only if the GBP/USD pair breaks a bearish
candlestick; the support level is at 1.5513, take profit is at
1.5443, and stop loss is at 1.5584.
The material has been provided by InstaForex Company – www.instaforex.com