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Daily analysis of GBP/USD for October 21, 2015

GBP/USD extended a pullback below 1.5458. Now, it is looking for an opportunity to test the support zone of 1.5411, which is very close to the current location of the 200 SMA on the H1 chart. Over there, a rebound towards new highs could happen. Another dynamic is calling for more downside room in market, once the cable makes a breakout below the support level of 1.5374, in a move that should open the door to the psychological level of 1.5300. The MACD indicator is at the negative territory.

GBPUSDH1.png

H1 chart's resistance levels: 1.5458 / 1.5506

H1 chart's support levels: 1.5411 / 1.5374

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 seen at 1.5458, take profit is at 1.5506, and stop loss is at 1.5411.

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