The pair is facing a strong dynamic resistance at the 200 SMA (H1 chart), where sellers are trying to push lower in order to strengthen the bearish bias across the board. However, GBP/USD remains supported by the 1.2229 level, where a breakout should open the doors to test the 1.2155 level. MACD indicator is entering the positive territory, which is an indicator of further gains in coming hours.
H1 chart's resistance levels: 1.2312 / 1.2427
H1 chart's support levels: 1.2229 / 1.2155
Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2229, take profit is at 1.2155 and stop loss is at 1.2301.
The material has been provided by InstaForex Company - www.instaforex.com