Daily chart: The GBPUSD pair continues forming a higher low pattern over the support at the level of 1.5023. In the resistance, near the level of 1.5159, a fractal is formed indicating that this resistance is very strong and it would be highly probable that the GBPUSD pair breaks the support at the level of 1.5023 to fall to the level at 1.4894, which also is located one bullish trend line. This pair is below the 200-day moving average and we can see very clearly that this pair is very weak and will continue to fall, according to our technical analysis. The MACD indicator remains in negative territory, but is approaching extreme oversold levels, but this is normal, because the pair has been falling so deep in recent weeks.
H4 chart: The GBPUSD pair is moving in a range between 1.5148 and 1.5017 levels. Movement within these ranges helped to the formation of a higher low pattern, so that the GBPUSD pair can break the support at the level of 1.5017 and fall to the level of 1.4830, in the medium term. Below this support we could look to place buy orders in the cable, because there are no supports or bullish trend lines that can stop the falls in this pair. However, this "bearish assumption" may fail, if the economic news in the UK becomes positive in the coming days. This pair remains below the 200-day moving average on this chart and the MACD indicator is in negative territory and showing strength in the GBPUSD bearish trend.
H1 chart: In this chart a higher low pattern above the support at the level of 1.5018 is also forming. Technically, it is possible that the GBPUSD pair may break the support level at 1.5018 and fall to 1.4972 level due to bearish session held on yesterday, which helped form this bearish pattern. Also, near the 1.5095 level, formed a Point of Control (POC), which indicates that it would be very difficult for the GBPUSD pair to rise above that level and we must consider that the 200-day moving average is close to that POC, which would make that area, in a congested area with a lot of resistance levels on the bullish road of this pair. However, if the resistance GBPUSD breaks at the level of 1.5074, it is expected to rise to the level 1.5119. The MACD indicator is extremely oversold.
Fundamental Outlook: For today's session major economic data releases in the U.S. and in the UK are not expected.
Trading recommendations for today: Based on the H4 chart, place sell (short) orders only if the GBPUSD pair breaks with a bearish candlestick, the support level is at 1.5018, take profit is at 1.4972, and stop loss is at 1.5063. Place buy (long) orders only if the GBPUSD pair breaks with a bullish candlestick, the resistance level is at 1.5074, take profit is at 1.5119, and stop loss is at 1.5030.
