On the daily chart, GBP/USD had a sharp drop from the resistance level of 1.6146 to the 1.6005 level, where the pair is trying to consolidate its current bearish trend, and now this pair could fall to the support level of 1.5883 in the medium term. That level is very strong, as this pair made a rebound at this level a few weeks ago. For now there is no clear view in the short term for the GBP/USD and the MACD indicator is entering neutral territory.
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 1.6031, which is below the 200-day moving average. However, the GBP/USD could conduct a retracement to the resistance level of 1.6075, even if the pair could perform a breakout at the support level of 1.5980 to fall to the level of 1.5925, which would be a bearish consolidation.
H1 chart's resistance levels: 1.6031 / 1.6075
H1 chart's support levels: 1.5980 / 1.5925
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 1.5980, take profit is at 1.5925, and stop loss is at 1.6035.
The material has been provided by InstaForex Company - www.instaforex.com
