GBP/USD continues to trade lower and riding a bearish bias below the 200 SMA at the daily chart. Also, we expect a bearish continuation until the support level of 1.5346 during this week. The current price action shows a fractal formation that favors bears in this
time frame. The MACD indicator is also at negative territory.
During the friday session,
GBP/USD had a strong drop below the 200 SMA at the H1 chart and is
already testing the zone around the support level at 1.5443. If the
pair breaks that level, it would be expected to fall until 1.5358. Currently, there is a lower low pattern formation in place, and we could expect more falls in an intraday basis.
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:
1.5443 / 1.5358
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 1.5443, take profit is at
1.5358, and stop loss is at 1.5534.
The material has been provided by InstaForex Company – www.instaforex.com