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Daily analysis of GBP/USD for May 04, 2018

The selling pressure remains as the main headliner across the board for GBP/USD, as the momentum is easing. It seems we could expect a leg lower to test the support level of 1.3480. The 200 SMA continues to provide a guide for the overall path, so it could act as a dynamic resistance when it coincides with the resistance zone of 1.3733.

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H1 chart's resistance levels: 1.3733 / 1.3838

H1 chart's support levels: 1.3609 / 1.3480

Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.3609, take profit is at 1.3480 and stop loss is at 1.3743.

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