Daily chart: The GBPUSD pair fell over 100 pips below the 200-day moving average and support at the 1.5506 level. Now, the next target for GBPUSD will be the support level at 1.5407. However, we must bear in mind that this drop in GBPUSD was driven by fundamental news that positively affected USD, so the technical patterns in GBPUSD still alive. It is possible that the cable will make a bullish rebound above the current levels and go back up to the level of 1.5642. On the other hand, if GBPUSD manages to break 1.5407 level, it would be expected to drop to the level of 1.5266, where this pair could start again a bearish trend. The MACD indicator is in negative territory and is in extreme overbought.
H4 chart: In this chart, GBPUSD is approaching the 200-day moving average and support at the 1.5411 level. It is very possible that this pair makes a bullish rebound on these levels and if so it would be expected to rise to the level of 1.5604. Furthermore, if GBPUSD manages to break the support at the level of 1.5411, it is expected to drop to the level of 1.5341. The MACD indicator remains in negative territory and still does not come close to oversold levels in this chart. However, we would expect the formation of a higher low pattern during today’s session.
H1 chart: The GBPUSD pair is forming a higher low pattern, after having made a bearish rebound in the Point of Control (POC) that formed near the 1.5655 level and therefore fell below the 200-day moving average. If GBPUSD manages to break the support level of 1.5460, it is expected to drop to the level of 1.5406. On the other hand, if GBPUSD manages to break the resistance 1.5534 level, it would be expected to rise to the level of 1.5590, which houses the SMA 200. The MACD indicator is in negative territory, showing a lot of weakness in the current bearish trend which is approaching oversold levels, so we must be careful with this pair in terms of intraday trading.
Fundamental Outlook: For today’s session, in the UK at 08:30 GMT Retail Sales (Previous: -1.3% / Forecast: 0.8%) will be published. In the United States at 12:30 GMT Unemployment Claims (Previous: 334K / Forecast: 343K) and at 14:00 GMT the Existing Home Sales (Previous: 4.97M / Forecast: 5.01m) and the Philly Fed Manufacturing Index (Previous: -5.2 / Forecast: -0.6) will be published.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks with a bearish candlestick, the support level is at 1.5460, take profit is at 1.5406, and stop loss is at 1.5511.
The material has been provided by InstaForex Company – www.instaforex.com
Daily chart: The GBPUSD pair fell over 100 pips below the 200-day moving average and support at the 1.5506 level. Now, the next target for GBPUSD will be the support level at 1.5407. However, we must bear in mind that this drop in GBPUSD was driven by fundamental news that positively affected USD, so the technical patterns in GBPUSD still alive. It is possible that the cable will make a bullish rebound above the current levels and go back up to the level of 1.5642. On the other hand, if GBPUSD manages to break 1.5407 level, it would be expected to drop to the level of 1.5266, where this pair could start again a bearish trend. The MACD indicator is in negative territory and is in extreme overbought.
H4 chart: In this chart, GBPUSD is approaching the 200-day moving average and support at the 1.5411 level. It is very possible that this pair makes a bullish rebound on these levels and if so it would be expected to rise to the level of 1.5604. Furthermore, if GBPUSD manages to break the support at the level of 1.5411, it is expected to drop to the level of 1.5341. The MACD indicator remains in negative territory and still does not come close to oversold levels in this chart. However, we would expect the formation of a higher low pattern during today’s session.
H1 chart: The GBPUSD pair is forming a higher low pattern, after having made a bearish rebound in the Point of Control (POC) that formed near the 1.5655 level and therefore fell below the 200-day moving average. If GBPUSD manages to break the support level of 1.5460, it is expected to drop to the level of 1.5406. On the other hand, if GBPUSD manages to break the resistance 1.5534 level, it would be expected to rise to the level of 1.5590, which houses the SMA 200. The MACD indicator is in negative territory, showing a lot of weakness in the current bearish trend which is approaching oversold levels, so we must be careful with this pair in terms of intraday trading.
Fundamental Outlook: For today’s session, in the UK at 08:30 GMT Retail Sales (Previous: -1.3% / Forecast: 0.8%) will be published. In the United States at 12:30 GMT Unemployment Claims (Previous: 334K / Forecast: 343K) and at 14:00 GMT the Existing Home Sales (Previous: 4.97M / Forecast: 5.01m) and the Philly Fed Manufacturing Index (Previous: -5.2 / Forecast: -0.6) will be published.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks with a bearish candlestick, the support level is at 1.5460, take profit is at 1.5406, and stop loss is at 1.5511.
The material has been provided by InstaForex Company – www.instaforex.com
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