Daily chart: GBP/USD continues to consolidate above support at the 1.5159 level. Now, this pair will form a lower high pattern to continue rising and reach resistance level 1.5266. If GBP/USD manages to break that level, it would be expected to rise to the level of 1.5407. Furthermore, if GBP/USD manages to break the support level of 1.5159, it is expected to drop to the level of 1.5023. The bullish trend in this pair could be extended by a few weeks, however, we must bear in mind that GBP/USD stays below the 200 day moving average. The MACD indicator is extremely oversold and entering a neutral territory.
H4 chart: This pair is approaching the 200 day moving average. Now, GBP/USD remains below the level of resistance 1.5195. If the pair manages to break that level, it is expected to rise to the level of 1.5260, which houses the SMA 200. Furthermore, if GBP/USD manages to break the support level of 1.5148, it is expected to drop to the level of 1.5032. For now, this pair continues forming a lower high pattern to follow up and breaking resistance levels. The MACD indicator is in an extremely overbought area, so it is very likely that the movement for today's session is slow.
H1 chart: GBP/USD continues to consolidate above the 200 day moving average and below resistance at the 1.5198 level. If the pair manages to break that level, it is expected to rise to the level of 1.5249. On the other hand, if GBP/USD manages to break the support at the 1.5119 level, it is expected to fall to the level of 1.5074, which houses the 200 day moving average. We must bear in mind that this may be an indication that GBP/USD will continue to climb, because it is forming bullish patterns, i.e., in favor of the trend. The MACD indicator is entering a negative territory, so we must be careful with this pair to do intraday trading.
Fundamental Outlook: For today's session, PPI (Previous: 0.5% / Forecast: 0.5%) at 12:30 GMT and the Prelim UoM Consumer Sentiment (Previous: 84.1 / Forecast: 85.3) at 13:55 GMT in the United States.
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 1.5198, take profit is at 1.5249, and stop loss is at 1.5146.
