On the daily chart, the GBP/USD pair made a strong breakout at the level of 1.5642, which opened the way for the pair to visit the support level of 1.5506. Now, the GBP/USD pair may begin to form a bearish pattern to try to continue the bearish bias in the medium term. However, this could be confirmed with a breakout level of 1.5506, which would lead the GBP/USD pair to touch the support level of 1.5407.
Dailychart's resistance levels: 1.5642 / 1.5746
Dailychart's support levels: 1.5506 / 1.5407
The GBP/USD pair is forming a lower low pattern below the resistance level of 1.5590, because this pair was able to consolidate below the 200-day moving average during yesterday's session. However, the GBP/USD pair could conduct a breakout at the level of 1.5590 and climb to the level of 1.5632, due to a bearish retracement this pair is doing. The MACD indicator is in the oversold zone.
H1 chart's resistance levels: 1.5590 / 1.5632
H1 chart's support levels: 1.5534 / 1.5501
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 1.5534, take profit is at 1.5501, and stop loss is at 1.5565.
The material has been provided by InstaForex Company - www.instaforex.com
