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Daily chart: GBPUSD is forming a lower high pattern, below the resistance level at 1.5642. It is very likely that this pair break that level and up to the resistance level at 1.5746, because its bullish trend has strengthened above the 200 day moving average. On the other hand, if the GBPUSD fails to make a bearish rebound at current levels, would be expected to fall to the level of 1.5506. The MACD indicator remains in positive territory, but is approaching extreme overbought levels, so we must be cautious.
H4 chart: This pair has consolidated above the support at the 1.5604 level. During this week, it is likely that the GBPUSD up to resistance at 1.5752 level. However, do not rule out the possibility that the GBPUSD break again achieved the level of support at 1.5604 and fall to the level of 1.5512. The odds still favor on current trend bullish of the GBPUSD, so we recommend placing buy orders above the support at 15604 level. The MACD indicator is in extreme overbought and entering negative territory, which could prompt a break in that support, so we must be attentive to it.
H1 chart: At current levels, it is forming a Point of Control (POC) which could act as support in the GBPUSD. It is therefore very likely that this pair rise to the resistance level 1.5686 and if the pair manages to break that level, it is expected to rise to the level of 1.5734. Furthermore, if the GBPUSD manages to break the support level of 1.5632, it is expected to drop to the level of 1.5590. GBPUSD remains above the 200 day moving average, which favors our bullish outlook for this pair. The MACD indicator remains in negative territory, but going into extreme oversold levels.
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 1.5686, take profit is at 1.5739, and stop loss is at 1.5632.
Source: www.instaforex.com
