Daily chart: This pair has had slow movements and is due to the corrective phase in which it has entered because the bullish trend has extended and strengthened for several days. However, we should be alert to any breakout in the resistance level of 1.6447 or the support level of 1.6326. However, it is expected that the GBP/USD will continue forming the lower high pattern above the 1.6326 level, to level a bit the extreme overbought levels in the MACD indicator.
H4 chart: The GBP/USD stays below resistance at 1.6435 level without significant changes that alter the current way of this pair. However, the pair stays above the bullish trend line but any of that trend line breakout could open the way for the GBP/USD to fall to the support level of 1.6262. The MACD indicator is still in negative territory and GBP/USD remains above the 200 SMA.
H1 chart: The GB/PUSD had a drop below 1.6375 level and found support at the level of 1.6331, very close to the 200 SMA. Now this pair is trying to consolidate back above 1.6375 level. If successful, it is expected to rise to the level of 1.6419 which should make a breakout to continue rising. Moreover, if this pair does break the support at the level of 1.6375, it is expected to fall to the level of 1.6331. The MACD indicator is entering extreme overbought zone and in neutral territory.
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 1.6419, take profit is at 1.6464, and stop loss is at 1.6375.
