Daily chart: Last week, the GBP/USD was bearish, but at the end of the week the pair made an attempt to recover, trying to climb to the resistance at the 1.5159 level and break it. Furthermore, it formed a support at the level of 1.5023. Those mentioned levels will be vital to the trend development at the beginning of the week. We propose two assumptions in this chart: if the GBP/USD breaks the resistance at the 1.5159 level, it is expected to rise to the level of 1.5270 or, if this pair breaks the support at the level of 1.5023, it is expected to fall to the support at the 1.4894 level. The strong weakness in the Cable will continue for a few more days because the MACD indicator is in the negative territory and still shows no signs that this pair is oversold.
H4 chart: On Friday, the pair moved in a low range (flat) and defined important supports and resistances for the GBP/USD trend development for this week. If the GBP/USD breaks the resistance level at 1.5148, it is expected to rise to the levels of 1.5195 and 1.5228. On the other hand, if the GBP/USD breaks the support at the level of 1.5032, it is expected to fall to the support level at 1.4830 in the medium term. If it breaks this support, we should expect the development of a higher low pattern in this chart to place sell orders on the Cable. This pair stays below the 200 day moving average, and the MACD indicator is in a positive territory, so we must be careful trading this pair.
H1 chart: This pair is approaching the resistance level at 1.5152 and the 200 day moving average. At the current price, it is forming a Point of Control (POC) that can serve as support or resistance for this pair, depending on which direction the Cable will take. If the GBP/USD breaks the resistance at the 1.5152 level, it is expected to rise to the level of 1.5198. On the other hand, if the GBP/USD breaks the support at the level of 1.5079, it is expected to drop to the level of 1.5019. We must be careful to do intraday trading, because the MACD indicator is in a neutral territory, showing some hesitancy among investors regarding the GBP/USD.
Fundamental Outlook: For today's session, we expect slow movements in the GBP/USD, because the UK has the Spring Bank Holiday and the United States, the Memorial Day.
Trading recommendations for today: Based on the H4 chart, place buy (long) orders only if the GBP/USD pair breaks with a bullish candlestick, the resistance level is at 1.5148, take profit is at 1.5195, and stop loss is at 1.5100. Place sell (short) orders only if the GBP/USD pair breaks with a bearish candlestick, the support level is at 1.5098, take profit is at 1.5043, and stop loss is at 1.5128.
