Daily chart: The GBPUSD pair attempted to break the support at the 1.5407 level but failed. Now, this pair is approaching the resistance at the level of 1.5506. Most likely, GBPUSD is forming a higher low pattern. If GBPUSD manages to break the support at the 1.5407 level, it is expected to fall to the level of 1.5266. On the other hand, if GBPUSD manages to break the resistance 1.5506 level, it would be expected to rise to the level of 1.5642. The MACD indicator is in negative territory, which supports a bearish outlook in the long term for the cable.
H4 chart: This pair is consolidating above the 200-day moving average and above the support at the level of 1.5411, after filling the GAP left in the opening session on Monday. If GBPUSD manages to break the support at the 1.5411 level, it is expected to fall to the level of 1.5341. Furthermore, it is possible that the cable will continue to rise until the next resistance level 1.5512. The MACD indicator is in positive territory, therefore, we must be cautious when making trading this pair, because it is moving in the middle of the SMA 200.
H1 chart: Yesterday, it has formed a Point of Control (POC) near the 1.5360 level, which strengthens the bullish trend in the short term for this pair. However, keep in mind that the GBPUSD pair continues below the 200-day moving average. If the GBPUSD pair is achieved closer to the SMA 200, it is very possible that this pair makes a bearish rebound there. If the GBPUSD pair manages to break the resistance at the 1.5460 level, it is expected to rise to the level of 1.5501. Furthermore, if GBPUSD manages to break the support at the level of 1.5406, it is expected to drop to the level of 1.5376. The MACD indicator is approaching extreme overbought levels, so we must be careful.
Fundamental Outlook: For today's session, in the UK at 8:30 GMT the BBA Mortgage Approvals (Previous: 32.2K / Forecast: 33.1K) and the Inflation Report Hearings will be published.
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 1.5460, take profit is at 1.5501, and stop loss is at 1.5419. Place sell (short) orders only if the GBP/USD pair breaks with a bearish candlestick, the support level is at 1.5406, take profit is at 1.5476, and stop loss is at 1.5436.
