The GBP/USD pair has been trapped in the low range that we mentioned in the latest article. The daily chart is still showing a strong bearish structure, as the 200 SMA is still pointing to the downside. Remember that the GBP/USD pair is forming a lower low pattern.
It’s not a secret that the
support zone around1.4842 is a very strong buying territory and that’s
why we have been watching for a rejection of the price over the last
days. Now, the pair could reach the resistance level at 1.4921 and
its trying to consolidate above the 200 SMA on the H1 chart. Anyway,
that moving average is still a solid dynamic resistance level.
resistance levels: 1.4948 / 1.5087
support levels: 1.4820 / 1.4649
H1 chart’s resistance
levels: 1.4921 / 1.4984
H1 chart’s support levels:
1.4842 / 1.4774
Trading recommendations for today: Based on the H1 chart,
place short (sell) orders only if the GBP/USD pair breaks a bearish
candlestick; the support level is at 1.4842, take profit is at
1.4774, and stop loss is at 1.4909.
The material has been provided by InstaForex Company – www.instaforex.com