Daily chart: The GBP/USD made a strong bullish rebound on bullish trend line near the support at the 1.4894 level. It is very possible that this rebound is to form a higher low pattern and keep falling. If the GBP/USD manages to break this support and that trend line, it's expected to fall to the level of 1.4719. This is an area where the strength of the buyers will be tested and treated to prevent further strengthening the bearish trend, therefore, we should be cautious about orders against the trend. The MACD indicator remains in negative territory and showing some weakness in GBP/USD bearish trend.
H4 chart: The GBP/USD is forming a higher low pattern and is trying to break the support level at 1.4830 and the bearish trend line close by. If the pair manages to break those levels,would be expected to fall very deep, at least to the level of 1.4600. However, the MACD indicator is extremely oversold, so we must be cautious. If the GBP/USD manages to break the resistance at the 1.5032 level, it's expected to rise to the level of 1.5148.
H1 chart: At current levels, it is forming a Point of Control (POC), which could act as support in the GBP/USD. If this pair manages to break the resistance level of 1.4972, it is seen to rise to the level of 1.5018. Furthermore, if the support GBP/USD manages to break at the level of 1.4903, it is expected to drop to the level of 1.4841. The MACD indicator remains in neutral territory, so we should carefully use this pair for day trading. However, the pair is kept below 200 SMA.
Fundamental outlook: For today's session, the Manufacturing Production will be published (Previous: -0.2% / Forecast: 0.3%) at 08:30 GMT in the UK.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks with a bearish candlestick, the support level is at 1.4903, take profit is at 1.4841, and stop loss is at 1.4967. Place buy (long) orders only if the GBP/USD pair breaks with a bullish candlestick, the resistance level is at 1.4972, take profit is at 1.5018, and stop loss is at 1.4925.
