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Daily analysis of GBP/USD for May 09, 2016

GBP/USD still trades into a weak structure favored by the bears as it could decline toward the support zone of 1.4315. The H1 chart is showing a resistance placed by the 200 SMA in a dynamic tone, and possibly we can expect more downside during the week, but a breakout above the 1.4549 level will invalidate that scenario.

GBPUSDH1.png

H1 chart's resistance levels: 1.4430 / 1.4549

H1 chart's support levels: 1.4316 / 1.4229

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 1.4316, take profit is at 1.4229 and stop loss is at 1.4402.

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