Finally, GBP/USD is already testing the support zone around the level of 1.5346 on the daily chart because of weakness. That's why we would prefer to stay riding the bearish outlook in the medium and long term. One of the reasons is represented with dynamic resistance offered by the 200 SMA in this time frame. The price action is very bearish in pattern formations.
The H1 chart is showing a bearish pattern formation taking place below the resistance level of 1.5443. Now it's trying to reach the support zone of 1.5358. If the pair achieves to break that level, it would be expected to test the level of 1.5259 in coming hours. Also, our intraday outlook remains very bearish.
Daily chart's resistance levels: 1.5543 / 1.5745
Daily chart's support levels: 1.5346 / 1.5199
H1 chart's resistance levels: 1.5443 / 1.5513
H1 chart's support levels: 1.5358 / 1.5259
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.5358, take profit is at 1.5259, and stop loss is at 1.5459.
The material has been provided by InstaForex Company - www.instaforex.com