Daily chart: GBP/USD is kept below the 200-day moving average due to the fact that itis trying to touch the support level of 1.6540 in this chart. Now, GBP/USD could begin to form a higher low pattern, so it is likely that this pair will perform corrective movements this week. The MACD indicator is in negative territory.
H4 chart: GBP/USD continues to find support at the level of 1.6553, where it has made a rebound to go up to the level of 1.6583, where a bearish trend line is located. If GBP/USD manages to make a breakout at that level, the next target would be the resistance level of 1.6644, which would be very likely due to the fact that this pair is oversold. The MACD indicator stays in positive territory.
H1 chart: This pair continues falling below the 200-day moving average and GBP/USD is now, doing a breakout at the support level of 1.6577, so it is likely that this pair will falls to the support level of 1.6544 within hours. If the GBP/USD manages to make a breakout at that level, it would be expected to fall until the support level of 1.6507. The MACD indicator is in neutral territory.
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 1.6544, take profit is at 1.6507, and stop loss is at 1.6581.
The material has been provided by InstaForex Company - www.instaforex.com
