GBP/USD continues moving in the bearish trend on the daily chart, but it is performing some rebounds in lower time frames, as the pair will try to develop a lower low pattern in coming days. We should remember the support zone of 1.5224 is still strong and we expect a bullish reaction there in
the short term.
On the H1 chart, the pair found strong
support at the level of 1.5272. The corrective moves could head towards the resistance zone of 1.5331. A breakout
over there will expose the cable to test the resistance level of
1.5368. The 200 SMA is bearish in this time frame.
Daily chart’s resistance
levels: 1.5329 / 1.5438
Daily chart’s support
levels: 1.5224 / 1.5107
H1 chart’s resistance
levels: 1.5331 / 1.5368
H1 chart’s support levels:
1.5272 / 1.5220
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 1.5272, take profit is at
1.5220, and stop loss is at 1.5322.
The material has been provided by InstaForex Company – www.instaforex.com