On the weekly chart it can be seen that the GBP/USD is trying to form a lower low pattern over the dynamic support offered by the 200 SMA at the level of 1.6249, and below that area, this pair has formed a fractal, so it is very likely that the GBP/USD is making a rebound in the long term, to strengthen the bullish outlook in the long term.
Weekly chart's resistance levels: 1.6478 - 1.6890
Weekly chart's support levels: 1.6249 - 1.6033
However, we can see on the H1 chart, at least in the short and medium term, the GBP/USD intends to continue the bearish trend for several more days, as this pair is consolidating below the 200-day moving average with the formation of a bearish pattern. If the GBP/USD manages to make a breakout at the level of 1.6216, the next target would be set at the territory of the 1.6170 level, which could have much bullish force trying to cause bullish rebounds ofn this pair.
H1 chart's resistance levels: 1.6252 – 1.6291
H1 chart's support levels: 1.6216 – 1.6170
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the resistance level is at 1.6338, take profit is at 1.6375, and stop loss is at 1.6299.
The material has been provided by InstaForex Company - www.instaforex.com
