Daily chart: The GBP/USD pair continues forming a bearish pattern over the support level of 1.6668. This level is very close to the 200-day moving average. So, this pair may perform a bullish rebound and regain the overall bullish trend. On the other hand, if the GBP/USD pair manages to make a breakout at the support level, it is expected to fall to the level of 1.6540. The MACD indicator is entering the oversold zone. Thus, the GBP/USD pair could enter a phase of consolidation.
H4 chart: This pair is trying to make a breakout at the resistance level of 1.6692 to climb to the next target level of 1.6731. However, GBP/USD may fall to the level of 1.6644. If the GBP/USD pair does a breakout at the 1.6644 level, it's expected to fall to the support level of 1.6583. The GBP/USD pair stays below the 200-day moving average. MACD indicator stays in the positive territory.
H1 chart: The GBP/USD pair has formed several fractals at the level of 1.6700, which gives it great strength to this area in this chart. Therefore, the pair is likely to fall to the support level of 1.6629 in the coming hours. If the GBP/USD manages to make a breakout at that level, it is expected to fall to the level of 1.6578. The MACD indicator is entering the neutral territory.
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
