In the daily chart, the support zone around the level of 1.4820 continues to reject the current price action of the GBP/USD pair, because bears are trying to gain territory. However, the pair is still trapped in that range. During this week, we expect more downside moves, as the 200 SMA is still bearish and the GBP/USD pair continues to form a lower low pattern.
The intraday structure shows sideways movements in the GBP/USD pair, but it's still below the 200 SMA at the H1 chart. So, we're looking for more downside movement in the pair. Anyway, GBP/USD is dealing with the support level of 1.4842, that is very strong. The 200 SMA continues to offer dynamic resistance in this consolidation phase.
Daily chart's resistance levels: 1.4948 / 1.5087
Dailychart's support levels: 1.4820 / 1.4649
H1 chart's resistance levels: 1.4921 / 1.4984
H1 chart's support levels: 1.4842 / 1.4774
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 1.4842, take profit is at 1.4774, and stop loss is at 1.4909.
The material has been provided by InstaForex Company - www.instaforex.com
