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Daily chart: The GBPUSD continues to fall below the resistance level at 1.5642 and now, it is likely to fall to support at the 1.5506 level, very close to the 200 day moving average. For this week, GBPUSD shows a bearish trend in development, which could continue for several days if the pair manages to break this support. If successful, it is expected to fall to support at the 1.5407 level. For now, we recommend placing orders in swing trading because there is no clarity in the current trend of the GBPUSD. The MACD indicator is in extreme overbought and entering in negative territory.
H4 chart: GBPUSD is trying to consolidate below resistance level at 1.5604. For now, this pair remains above the support at the 1.5512 level and if you can break it, would be expected to fall to the level of 1.5436, which houses the 200 day moving average. It is very possible that the GBPUSD continues to drop, because above the current price of this pair, there are several fractals offering resistance on the GBPUSD. The MACD indicator is in negative territory, but is likely to start entering neutral territory, because of the extreme oversold that is starting to show in this chart.
H1 chart: The GBPUSD is maintained with a non-defined trend in this chart, because it is moving between the 200 day moving average and support at the 1.5534 level. If the GBPUSD managed to break the resistance level at 1.5632, we might consider that as a bullish rebound and eventually, this pair could rise to the level of 1.5686. Furthermore, if the GBPUSD manages to break the support level of 1.5501, it is expected that this start a bearish trend and fall to the level of 1.5460. The MACD indicator is in positive territory, but is likely to enter neutral territory, so we must be cautious.
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 1.5632, take profit is at 1.5686, and stop loss is at 1.5579. Place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.5501, take profit is at 1.5460, and stop loss is at 1.5542.
Source: www.instaforex.com
