Daily chart: Finally, GBPUSD broke the resistance level at 1.6146 and now this pair is trying to break the resistance level at 1.6235. If the pair manages to break that level, it is expected to rise to the level of 1.6326. On the other hand, if this pair makes a bearish rebound at current levels, it would be expected to fall to support at the 1.6146 level to form a lower high pattern. The MACD indicator is entering extremely overbought zone and still continues to be in positive territory. GBPUSD remains above the 200-day moving average.
H4 chart: This pair broke the resistance at the 1.6164 level and is likely to rise to the level of 1.6400 in the medium term. By now, one would expect this pair to start forming a lower high pattern. Below current levels, there is a bullish trendline support in this pair, which strengthens our bullish outlook for GBPUSD. The MACD indicator remains in positive territory and showing some weakness in the current bullish trend.
H1 chart: GBPUSD finished in forming a lower high pattern below the resistance level of 1.6216 and is now very likely that this pair rises to the level of 1.6291. However, it would be expected to fall back to the support at the level of 1.6216 and if it comes to break, it is expected to drop to the level of 1.6170. On the other hand, we recommend keeping the buy orders, because GBPUSD is still very bullish. The MACD indicator is entering positive territory, which strengthens our bullish outlook for this pair.
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 1.291, take profit is at 1.6331, and stop loss is at 1.6248.
