Daily chart: GBP/USD continues forming a lower high pattern, the resistance below the level of 1.5642. Yesterday, this pair was very bullish and consolidated above the 200 day moving average, which could indicate that GBP/USD could be bullish for a long time. However, we cannot rule out a possible bearish rebound in the current price of the cable and, if it does that, it is expected to fall to support at the 1.5506 level. On the other hand, if GBP/USD manages to break the resistance 1.5642 level, it would be expected to rise to the level of 1.5795. All technical indicators are supporting the bullish outlook on this pair, but we could see consolidation movements in the coming sessions for this pair, something that is not completely ruled out. The MACD indicator remains in a positive territory, but it is showing weakness in the current bullish trend of this pair.
H4 chart: GBP/USD is trying to break the bullish trend line, which is near the 1.5650 level. In this chart, the cable stays above the 200 day moving average and it is noteworthy that GBP/USD formed three fractals in the 1.5512 support level. If GBP/USD managed to break the resistance level at 1.5676, it would be expected to rise to the level of 1.5826 in the medium term. On the other hand, if GBP/USD breaks support at the level of 1.5512, it is expected to fall to the level of support 1.5411. This pair is still forming a lower high pattern and would be expected to finish this pattern over the coming sessions. The MACD indicator is in a neutral territory, so we must be careful with this pair today.
H1 chart: The Point of Control (POC) that has formed near the 1.5534 level has given strength to this area, so GBP/USD may fall below that area. In addition, GBP/USD remains above the 200 day moving average, and during yesterday's session this pair managed to break the resistance level 1.5632 and now, it is forming a lower high pattern. If GBP/USD manages to finish to form this pattern, it would be expected to continue up to the resistance level at 1.5686. On the other hand, if GBP/USD takes a bearish rebound at the current level, would be expected to fall back to the support level at 1.5590 and if the pair breaks this support, it is expected to fall to the level of 1.5534. The MACD indicator is in a positive territory, but approaching overbought levels.
Fundamental outlook: For today's session, the Claimant Count Change (Previous:-7.3K / Forecast:-6.8K) and Unemployment Rate (Previous: 7.8% / Forecast : 7.8%) will be published in the UK at 08:30 GMT. We hope that this time this pair will have very volatile movements.
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks with a bullish candlestick, the resistance level is at 1.5675, take profit is at 1.5764, and stop loss is at 1.5590. Place sell (short) orders only if the GBP/USD pair breaks with a bearish candlestick, the support level is at 1.5512, take profit is at 1.5411, and stop loss is at 1.5612.
