The GBP/USD pair is still forming a lower low pattern below the resistance level of 1.4820. For now, we're wating for a re-test at the support zone around 1.4649. The bearish structure is still showing us enough downside force to continue dropping in the medium and long terms. Also, the 200 SMA at the daily chart is still bearish.
The Thursday's session had an interesting price action at the H1 chart, as the GBP/USD pair did a pullback at the 200 SMA and it failed to consolidate above that indicator. The pair is currently trying to break the support level of 1.4697 with a lower low pattern formation. In case of success, the next target is going to be at the support zone arond 1.4629, which is the March 18 low.
Daily chart's resistance levels: 1.4820 / 1.4948
Dailychart's support levels: 1.4649 / 1.4533
H1 chart's resistance levels: 1.4842 / 1.4921
H1 chart's support levels: 1.4697 / 1.4629
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 1.4697, take profit is at 1.4629, and stop loss is at 1.4770.
The material has been provided by InstaForex Company - www.instaforex.com
