The GBP/USD continues to weaken in the daily chart, because this pair has found support at the 1.6046 level. If the GBP/USD manages to consolidate below this level, it would be expected to fall to the support level of 1.5883 in the long term. It would be a bearish consolidation below the fractal which formed days ago. However, it is likely that the GBP/USD will start performing corrective movements. The MACD indicator is entering neutral territory.
Dailychart's resistance levels: 1.6146 – 1.6235
Daily chart's support levels: 1.6046 - 1.5883
On the H1 chart, GBP/USD made a sharp drop to the support level of 1.6031, where the pair performed a rebound and later found resistance at the 1.6075 level. Now, the GBP/USD is trying to form a lower low pattern to strengthen the bearish trend in the short term. In addition, the GBP/USD that still remains below the 200 SMA.
H1 chart's resistance levels: 1.6075 – 1.6117
H1 chart's support levels: 1.6031 – 1.5980
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 1.6031, take profit is at 1.5980, and stop loss is at 1.6083.
The material has been provided by InstaForex Company - www.instaforex.com
