On the daily chart, the GBP/USD pair had a sharp drop from the resistance level of 1.5883 to 1.5784 level during yesterday's session. This move could mean the formation of a solid bearish pattern on the GBP/USD pair. If the pair manages to make a breakout at the 1.5746 level, it's expected to drop to the level of 1.5642 which would be a new monthly low level. On the other hand, this pair could rise to the resistance level of 1.5883 as part of a bullish retracement. The MACD indicator remains in the negative territory.
Dailychart's resistance levels: 1.5883 / 1.6046
Daily chart's support levels: 1.5746 / 1.5642
The GBP/USD pair is forming a lower low pattern below the resistance level of 1.5810, because this pair encountered strong resistance at the 200-day moving average in the one-hour chart. If the pair manages to make a breakout at the 1.5739 level, it would be expected to fall to the support level of 1.5686. However, due to the precipitous drop, the GBP/USD pair could conduct a retracement to the 1.5871 level. The MACD indicator remains in the negative territory.
H1 chart's resistance levels: 1.5810 / 1.5871
H1 chart's support levels: 1.5739 / 1.5686
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 1.5871, take profit is at 1.5810, and stop loss is at 1.5931.
The material has been provided by InstaForex Company - www.instaforex.com
