Daily chart: The GBP/USD is starting formation of a higher low pattern above the support level of 1.6668. This support level is near the 200-day moving average on this chart. This pair is likely to move in a range during today's session, because the GBP/USD is oversold. The MACD indicator remains in negative territory and entering oversold zone.
H4 chart: The GBP/USD is consolidating below the resistance level of 1.6692, so it is very likely that this pair will fall to the support level of 1.6644. If the GBP/USD manages to make a breakout at that level, the next target would be the level of 1.6583. However, if this pair makes a breakout of the resistance level of 1.6692, it would be expected to rise to the level of 1.6731. The GBP/USD stays below the 200 SMA.
H1 chart: The GBP/USD is trying to form a bearish pattern below the resistance level of 1.6700, so this pair could fall to the support level of 1.6629. If the GBP/USD manages to make a breakout at that level, it would be expected to fall to the level of 1.6578. The MACD indicator is in neutral territory and entering oversold area.
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 1.6629, take profit is at 1.6578, and stop loss is at 1.6682.
The material has been provided by InstaForex Company - www.instaforex.com
