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Daily analysis of GBP/USD for August 25, 2015

GBP/USD is very strong in the current bullish bias on the daily chart, which is facing now the resistance level of 1.5761 into an effort to break that zone. The rally is likely to unfold towards the 1.5881 level. Bear in mind that high hasn't been tested since June 2015. So we should be prepared for a trading towards that level if bulls remains alive in this strength.

GBPUSDDaily.png

On H1 chart, there is a higher high pattern formation below the resistance level of 1.5798 and a breakout over there will expose the pair to test the 1.5854 zone. Currently, bulls are getting favored by the momentum gained during the rebound above the 200 SMA on this time frame. MACD indicator is reaching an overbought area.

GBPUSDH1.png

Daily chart's resistance levels: 1.5761 / 1.5881

Daily chart's support levels: 1.5640 / 1.5543

H1 chart's resistance levels: 1.5798 / 1.5854

H1 chart's support levels: 1.5763 / 1.5715

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.5798, take profit is at 1.5854, and stop loss is at 1.5739.

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