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Daily analysis of GBP/USD for June 05, 2015

The rebound is still alive on the daily chart, because GBP/USD keeps moving in favor of the bullish corrective move. Also, it's looking to reach the 200 SMA in this time frame. However, that bearish path in a general bias is still alive and the MACD indicator is in negative territory. For now, it's better to see more bearish pattern formations before taking short trades.

GBPUSDDaily.png

In the H1 chart, the intraday structure is still bullish as the pair is trying to consolidate above the 200 SMA. Anyway, we're expecting pullbacks at current levels because of the strong resistance zone that we're watching currently. Also, GBP/USD is still weak and there is no clear trend-change patterns formed yet in major charts, such as the H4 or daily.

GBPUSDH1.png

Daily chart's resistance levels: 1.5346 / 1.5543

Daily chart's support levels: 1.5199 / 1.5090

H1 chart's resistance levels: 1.5358 / 1.5428

H1 chart's support levels: 1.5259 / 1.5158

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 1.5259, take profit is at 1.5158, and stop loss is at 1.5358.

The material has been provided by InstaForex Company - www.instaforex.com