Daily chart: The GBP/USD has failed to make a breakout in the support level of 1.6663. This support level is shown quite strong, and that on two occasions, this pair has tried to make a breakout there without success. If this pair takes a bullish rebound at current levels, it is expected to rise to the resistance level of 1.6766. On the other hand, a breakout at that support level could lead the GBP/USD to fall to the level of 1.6540. The MACD indicator is in the overbought zone.
H4 chart: The GBP/USD has found support on the bullish trend line near the 1.6695 level. If this pair takes a bullish rebound at the current levels, it is expected to rise to the level of 1.6820. This pair has been very solid in the bullish bias, so it is very likely that these corrective movements are present. The MACD indicator is still in negative territory.
H1 chart: This pair found resistance near the 1.6730 level and now, the GBP/USD is trying to consolidate below the resistance level of 1.6700. However, if this pair makes a breakout at that level would be expected to rise to the level of 1.6750. On the other hand, it is very likely that this pair will fall to the support level of 1.6629, as this pair has failed to consolidate above the 1.6700 level. The MACD indicator is entering negative territory.
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 1.6700, take profit is at 1.6750, and stop loss is at 1.6650.
The material has been provided by InstaForex Company - www.instaforex.com
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