On the daily chart GBP/USD continues battling with the support level of 1.5642, because this pair plummeted to that area during the yesterday's session. A breakout at that level could lead the GBP/USD pair to touching the 1.5506 level. It should be noted that the pair formed a fractal at the 1.5746 level, which could add more strength to that area. The MACD indicator remains in positive territory.
Dailychart's resistance levels: 1.5746 / 1.5883
Dailychart's support levels: 1.5642 / 1.5506
The GBP/USD pair made a false breakout in the support level of 1.5632 and now this pair is forming a bearish pattern in attempt to consolidate back below that area. Currently, the GBP/USD is below the 200-day moving average in the H1 chart, which supports our bearish outlook in the short term for this pair.
H1 chart's resistance levels: 1.5686 / 1.5739
H1 chart's support levels: 1.5632 / 1.5590
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 1.5632, take profit is at 1.5590, and stop loss is at 1.5674.
The material has been provided by InstaForex Company - www.instaforex.com
