On the daily chart, GBP/USD is still with gains above the support level of 1.5640. The focus remains around the 1.5761 level, where a breakout should open the doors to test the next resistance zone of 1.5881. However, we should look for bullish pattern formations in lower time frames in order to ride properly this upside bias.
The pair is acting according to sellers' reaction at the resistance level of 1.5679, where a pullback should happen towards the 1.5632 level on H1 chart, but still there are no clear trend-change patterns in place to ride the pullbacks in the mid term. However, the short-term outlook is still calling for upsides when a breakout around the 1.5679 zone happens with focus at the 1.5715 level.
Daily chart's resistance levels: 1.5761 / 1.5881
Daily chart's support levels: 1.5640 / 1.5543
H1 chart's resistance levels: 1.5679 / 1.5715
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 1.5715, and stop loss is at 1.5644.
The material has been provided by InstaForex Company - www.instaforex.com