On the daily chart, we should note the Monday session was a slow one because of the holidays in most of European countries and the US. GBP/USD has been trading below the resistance zone of 1.5381. Watch for a breakout higher during this week, in order to test the next interest level around 1.5439.
The pair continues to perform pullbacks after the opening bell and this should be an indicator of possible corrections, which could be extended towards the support level of 1.5285 where the 200 SMA is located. Over that zone, we can expect a rebound because of a bullish reaction.
Daily chart's resistance levels: 1.5381 / 1.5439
Daily chart's support levels: 1.5325 / 1.5256
H1 chart's resistance levels: 1.5342 / 1.5400
H1 chart's support levels: 1.5282 / 1.5223
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 seen at 1.5342, take profit is at 1.5400, and stop loss is at 1.5285.
The material has been provided by InstaForex Company - www.instaforex.com