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Daily analysis of GBP/USD for May 06, 2016

The current structure of the Cable is calling for a bearish continuation below the 200 SMA, and the H1 chart is showing us that the level of 1.4430 could provide a strong support on a short-term basis. If GBP/USD succeeds in breaking that zone to the downside, then we can expect a decline toward the 1.4316 level. The MACD indicator is in positive territory.

GBPUSDH1.png

H1 chart's resistance levels: 1.4549 / 1.4633

H1 chart's support levels: 1.4430 / 1.4316

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 1.4549, take profit is at 1.4633 and stop loss is at 1.4465.

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