Technical analysis of GBP/USD for July 25, 2016

Overview:

• The GBP/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still trading between the levels of 1.3090 and 1.3239. Also, the daily resistance and support are seen at the levels of 1.3239 and 1.3090 respectively. Therefore, it is recommended to be cautious while placing orders in this area. Thus, we need to wait until the sideways channel is completed. Consequently, the first support is set at the level of 1.3090. So, the market is likely to show signs of a bullish trend around the spot of 1.3090-1.3100. In other words, buy orders are recommended above the area of 1.3090-1.3100 with the first target at the level of 1.3239. Furthermore, if the trend is able to break out through the first resistance level of 1.3239. We should see the pair climbing towards the second resistance (1.33454) to test it. Also, it should be noted that the double top is seen at the price of 1.3480. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.2998.

The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com