GBP/USD is looking to break higher the resistance level of 1.5640 during this week because it continues to be supported by the 200 SMA on the daily chart and bullish patterns are taking place on lower time frames. That scenario will push the pair to test the resistance zone of 1.5761. MACD indicator is entering the positive territory.
On H1 chart, GBP/USD found again dynamic support above the 200 SMA. It's now forming a higher high pattern below resistance level of 1.5679, which could be broken in the coming days because bulls are still strong on the cable. However, a pullback could happen at current levels. MACD indicator is entering the positive territory.
Daily chart's resistance levels: 1.5640 / 1.5761
Daily chart's support levels: 1.5543 / 1.5450
H1 chart's resistance levels: 1.5679 / 1.5721
H1 chart's support levels: 1.5632 / 1.5587
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 1.5679, take profit is at 1.5721, and stop loss is at 1.5636.
The material has been provided by InstaForex Company - www.instaforex.com