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Daily analysis of GBP/USD for May 04, 2016

GBP/USD had a strong decline during yesterday's session as the Cable found resistance around the 1.4775 level, and afterwards the pair is looking to consolidate in sideways around the 200 SMA on the H1 chart. However, a breakout below that zone will open the door for new lows toward the 1.4430 level on a short-term basis.

GBPUSDH1.png

H1 chart's resistance levels: 1.4633 / 1.4722

H1 chart's support levels: 1.4549 / 1.4430

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 1.4633, take profit is at 1.4722 and stop loss is at 1.4543.

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