On the daily chart, GBP/USD did an anticipated pullback. The pair is currently forming a bullish pattern. The current structure shows that the next move higher is possible because GBP/USD retraced to the 50% of Fibonacci level located at the last swing lower. The MACD indicator is entering positive territory.
The current outlook in the short term remains bullish, because GBP/USD did a rebound above the 200 SMA, where it found dynamic support as expected. That is why we want to see a breakout above the resistance level of 1.5639, in order to reach the next important high around 1.5678. The MACD indicator is still at positive territory.
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