There is still a high risk of more bullish moves on the daily chart because the GBP/USD pair is trying to break the resistance zone around 1.4948 in order to reach the next target at 1.5086. Also, the GBP/USD pair is getting some bearish pressure from that resistance, so there is a possibility that the pair continue to move downwards on the par in the medium and long terms.
As we noted in our previous article about GBP/USD, this pair has already consolidated above the 200 SMA in the H1 chart forming a bullish pattern below the resistance level at 1.4921. A breakout of that level is going to lead to more bullish moves to the zone around 1.4968, because the GBP/USD is already forming a higher high pattern. Anyway, because of the overall bearish trend, we expect a pullback at the current levels.
Daily chart's resistance levels: 1.4948 / 1.5086
Dailychart's support levels: 1.4820 / 1.4649
H1 chart's resistance levels: 1.4921 / 1.4968
H1 chart's support levels: 1.4842 / 1.4774
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 1.4842, take profit is at 1.4774, and stop loss is at 1.4912.
The material has been provided by InstaForex Company - www.instaforex.com
