The GBP/USD pair is still bearish and it’s prepearing to test the support level at 1.5346 again. There is a high risk of a breakout in that territory for a lower continuation towards the support level of 1.5199 in coming days. 200 SMA is still flat on the daily chart. We would expect some kind of sideways
moves before that possible breakout.
In the H1 chart, GBP/USD is
trading in favor of the intraday bearish bias below the 200 SMA.
Also, the bottom at the support level of 1.5358 is still solid and
that’s why we would expect a lower low pattern formation. For now,
GBP/USD continues to form lower swings and the current structure is
resistance levels: 1.5543 / 1.5745
support levels: 1.5346 / 1.5199
H1 chart’s resistance
levels: 1.5443 / 1.5513
H1 chart’s support levels:
1.5358 / 1.5259
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 1.5358, take profit is at
1.5259, and stop loss is at 1.5459.
The material has been provided by InstaForex Company – www.instaforex.com