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Daily analysis of GBP/USD for May 20, 2016

The pair has been trading into a bullish tone below the resistance zone of 1.4622, where we're expecting a pullback toward the 1.4549 level. However, a deeper corrective move can happen, and that could be into a 50% Fibonacci retracement from the May 16th lows, the but bullish bias is still strong, and the Cable can push higher to the 1.4686 level. The MACD indicator is at negative territory.

1463696187_GBPUSDH1.png

H1 chart's resistance levels: 1.4622 / 1.4686

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 1.4622, take profit is at 1.4686 and stop loss is at 1.4558.

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