Daily analysis of GBP/USD for October 05, 2015 Market Analysis Review

On the daily chart, GBP/USD found a bottom near the zone of 1.5169, and it is expected to extend corrective moves towards 1.5256. However, this move should be taken as one lower low pattern formation, which could deliver more bearish moves until at least the support level of 1.5030. The MACD indicator remains at the negative territory.

We saw a recovery from the support level of 1.5103 and now the Cable is testing the 200 SMA on the H1 chart, a zone that produced a pullback across the support level of 1.5166. In case of a breakout below there, it could fall until 1.5103. We Still want to ride the current bearish bias. The MACD indicator is entering the negative territory.

Daily chart's resistance levels: 1.5169 / 1.5256

Daily chart's support levels: 1.5030 / 1.4955

H1 chart's resistance levels: 1.5223 / 1.5284

H1 chart's support levels: 1.5166 / 1.5103

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the resistance level is at 1.5166, take profit is at 1.5103, and stop loss is at 1.5229.

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