Daily analysis of GBP/USD for July 22, 2015 Market Analysis Review

On the daily chart, GBP/USD has been trading in favor of a bearish bias. Now, it is testing the 200 SMA again. We are waiting for a breakout below that dynamic support. If that happens in the near terme, it would be expected to fall until the support level of 1.5450 in coming days. The MACD indicator is entering negative territory.

GBP/USD is consolidating below the 200 SMA on the H1 chart and continues to build a very solid intraday bearish structure. Support zone of 1.5524 remains very strong. Temporal bullish momentum favored price action. That is why we should wait for a breakout there in order to continue trading on the downside.

Daily chart's resistance levels: 1.5640 / 1.5755

Daily chart's support levels: 1.5543 / 1.5450

H1 chart's resistance levels: 1.5596 / 1.5639

H1 chart's support levels: 1.5524 / 1.5485

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 1.5596, take profit is at 1.5639, and stop loss is at 1.5554.

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