On the daily chart, we can see that the GBP/USD fell steeply from the level of 1.6050 to the support level of 1.5883, because the GBP/USD is very weak now and it is likely that this pair will begin to form another bearish pattern for continue strengthening the current bearish trend. If the pair manages to consolidate below this support level, the next target would be the 1.5746 level in the medium term.
Dailychart's resistance levels: 1.6046 – 1.6146
Daily chart's support levels: 1.5883 - 1.5746
The GBP/USD is forming a lower low pattern below the resistance level of 1.5925, because this pair found resistance near the 200 SMA on the H1 chart. However, the GBP/USD could begin to make a retracement because the MACD indicator is entering oversold zone.
H1 chart's resistance levels: 1.5925 – 1.5980
H1 chart's support levels: 1.5871 – 1.5810
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
