On the daily chart, GBP/USD had a strong bullish momentum above the support level of 1.5543. The zone around 1.5640 was already tested by the pair, which remains alive. Bear in mind that a breakout over that high would enable the pair to visit the next resistance at the level of 1.5755 in the mid term.
The pair is consolidating above the support level of 1.5596. On the H1 chart, GBP/USD is looking for an opportunity to break the resistance zone of 1.5639. In case of success, it would be expected to reach the level of 1.5678 in coming hours. This time frame is also showing us a possible bullish consolidation, which could last in the short and medium term, above the 200 SMA.
Daily chart's resistance levels: 1.5640 / 1.5755
Daily chart's support levels: 1.5543 / 1.5450
H1 chart's resistance levels: 1.5639 / 1.5678
H1 chart's support levels: 1.5596 / 1.5524
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.5639, take profit is at 1.5478, and stop loss is at 1.5601.
The material has been provided by InstaForex Company - www.instaforex.com