The pair recovered from the losses at the session on Monday, as it continues to trade below the resistance level of 1.4820 and is very strong in the bearish bias. As we expected, the GBP/USD pair formed a fractal near to the level of 1.4720. Also, the GBP/USD pair is likely to look for more deeper retracements as the lower low pattern formation is on the way.
At the H1 chart, the GBP/USD pair was rejected by the resistance level of 1.4844. The intraday price action is advising us of a possible bearish continuation to the support level of 1.4746, where the pair could do a breakout in order to hit its lowst since March 13. The 200 SMA is still bearish and the MACD indicator is at the negative territory.
Daily chart's resistance levels: 1.4820 / 1.4948
Dailychart's support levels: 1.4649 / 1.4520
H1 chart's resistance levels: 1.4844 / 14893
H1 chart's support levels: 1.4746 / 1.4697
Trading recommendations for today: Based on the H1 chart, place short (sell) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.4746, take profit is at 1.4697, and stop loss is at 1.4796.
The material has been provided by InstaForex Company - www.instaforex.com
