Daily chart: Yesterday, the pair had a strong bullish momentum, leading to break the resistance level at 1.6046, after having formed a lower high pattern. Now, GBPUSD is forming the same bullish pattern to try to break the resistance level at 1.6146 and if it succeeds, it is expected to rise to the level of 1.6235. On the other hand, we expect this pair to start performing some corrective movements, because GBPUSD has gone up significantly. The MACD indicator remains in positive territory and entering extremely overbought area.
H4 chart: GBPUSD failed to break the bullish trendline near the 1.6055 level, and now it is expected that this pair will rise to the level of 1.6300 in the medium term. However, GBPUSD is likely to fall back to the bullish trendline nearby to grab momentum and continue the bullish stream. On the other hand, if the pair manages to break the 1.6180 level, it is expected to climb to the level of 1.6300. The MACD indicator is in extreme overbought area and entering positive territory.
H1 chart: This pair could break resistance levels of 1.6031, 1.6075 and 1.6117 and now, this is forming a lower high pattern below the resistance level of 1.6170. If the pair manages to break that level, it is expected to rise to the level of 1.6216. On the other hand, if the pair manages to break the support at the level of 1.6117, it is expected to drop to the level of 1.6075. The MACD indicator is in extreme overbought area and entering neutral territory, so we should be cautious.
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.6170, take profit is at 1.6216, and stop loss is at 1.6126.
