Daily chart: The GBP/USD opened this week with a bullish gap, so it is likely that this pair will climb to the resistance level of 1.6766. However, the GBP/USD could perform a pullback in that level and fall back to the support level of 1.6668 to fill the gap, in an area where the 200-day moving average is located. The MACD indicator is entering oversold zone, so it is likely that the GBP/USD will continue forming a higher low pattern.
H4 chart: The GBP/USD is kept below the resistance level of 1.6731, because the pair is likely to fall to the support level of 1.6692 within hours. If the GBP/USD does a breakout at the resistance level of 1.6762, it's expected to rise to the level of 1.6820. There it would be very close to the 200-day moving average. The MACD indicator stays in positive territory.
H1 chart: The GBP/USD moved in the range during yesterday's session of , below the 200 SMA. If this pair manages to make a breakout at the support level of 1.6700, the next target would be the support level of 1.6629. On the other hand, if the GBP/USD does a breakout at the 1.6750 level, it would be expected to that rise to the level of 1.6800. The MACD indicator remains in negative 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 1.6700, take profit is at 1.6629, and stop loss is at 1.6775.
The material has been provided by InstaForex Company - www.instaforex.com
