On the daily chart, the sideway trade is dominating the dynamic of GBP/USD, which continues to be trapped below resistance zone of 1.5640, but still trading above 200 SMA. However, a breakout over there will push the pair higher to test the next resistance around the 1.5761 level. MACD indicator is on the positive territory.
The resistance at the 1.5632 level is still rather strong on an intraday basis and the cable is falling further until the 200 SMA on H1 chart. Besides, GBP/USD seems to find dynamic support there and it could start to do rallies above the 1.5632 level until 1.5679. GBP/USD is still keeping the bullish momentum.
Daily chart's resistance levels: 1.5640 / 1.5761
Daily chart's support levels: 1.5543 / 1.5450
H1 chart's resistance levels: 1.5632 / 1.5679
H1 chart's support levels: 1.5587 / 1.5545
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 1.5632, take profit is at 1.5679, and stop loss is at 1.5541.
The material has been provided by InstaForex Company - www.instaforex.com