On the daily chart, the GBP/USD is making a breakout at the level of 1.6146, in an attempt to reach the resistance level of 1.6235. These movements could be part of a bullish correction, so the GBP/USD could make a pullback at this resistance level. However, the GBP/USD could touch the 200-day moving average in the medium and long term, because the GBP/USD has been oversold during the last hours. The MACD indicator is trying to get into neutral territory.
Dailychart's resistance levels: 1.6235 – 1.6326
Daily chart's support levels: 1.6146 - 1.6046
On the H1 chart, we can see that this pair had a bullish strong momentum on the support level of 1.6031, so far, this pair is trying to make a breakout on the resistance level of 1.6170, to climb to the resistance level of 1.6252. However, we must stress the fact that this pair could make a pullback at current levels, because the 200-day moving average is serving as dynamic resistance. The MACD indicator would support our bullish outlook for the GBP/USD.
H1 chart's resistance levels: 1.6216 – 1.6252
H1 chart's support levels: 1.6170 – 1.6117
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 at 1.6216, take profit is at 1.6252, and stop loss is at 1.6176.
The material has been provided by InstaForex Company - www.instaforex.com
