We can observe a lower low pattern formation at the daily chart, which could be forecasting future new lows to be reached in the medium term. The 200 SMA is still on the bearish degree and GBP/USD has been developing a bearish structure, which could be very strong if achieves another pattern in favor of the overall trend. The MACD indicator is at negative territory.
The GBP/USD pair is currently looking for strong support around the level of 1.4612, after a nosedive from a high posted on April 8. Currently, on the H1 chart, the resistance level at 1.4684 is rejecting the price action of the pair and we could see it testing the level of 1.4546 during this week, as GBP/USD is getting weak in the short term.
Daily chart's resistance levels: 1.4820 / 1.4976
Dailychart's support levels: 1.4649 / 1.4540
H1 chart's resistance levels: 1.4684 / 1.4728
H1 chart's support levels: 1.4612 / 1.4546
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 1.4612, take profit is at 1.4546, and stop loss is at 1.4674.
The material has been provided by InstaForex Company - www.instaforex.com
