On the daily chart the pair is still showing a solid bearish structure and it is getting ready for breaking the support level of 1.4820. Remember that low is very important as that level is a fresh multi-year low. For now, we could expect a bearish pattern formation and, more probably, some retracements because the GBP/USD pair will reach oversold levels in lower time frames soon.
The GBP/USD pair will finish developing a lower low pattern formation on the H1 chart because the pair is doing a breakout at the support level of 1.4844. To the downside, the pair will find a support at the zone of 1.4746. Also, GBP/USD will get more bearish momentum in the near term because the MACD indicator is still in a solid negative territory.
Daily chart's resistance levels: 1.4948 / 1.5086
Dailychart's support levels: 1.4820 / 1.4649
H1 chart's resistance levels: 1.4891 / 1.4948
H1 chart's support levels: 1.4844 / 1.4746
Trading recommendations for today: Based on the H1 chart, place short (sell) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.4844, take profit is at 1.4746, and stop loss is at 1.4940.
The material has been provided by InstaForex Company - www.instaforex.com
