The GBP/USD is moving in range above the support level of 1.5951, because this pair is currently forming a bearish pattern that helps strengthen the bearish outlook in the medium term for the GBP/USD. However the GBP/USD could conduct a retracement to the resistance level of 1.6051. The MACD indicator remains in positive territory.
H4chart's resistance levels: 1.6004/1.6051
H4chart's support levels: 1.5951/1.5874
In the H1 chart, the GBP/USD is being rejected by the support level of 1.5925 so this pair could go back up to the 200 SMA at the 1.6031 level. However, there is still a high probability that this pair will carry out another breakout at the level of 1.5980 and fall to the level of 1.5925, which is a pretty strong support level. In the short term, our bearish outlook still remains alive.
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
