The daily chart structure remains pointing to the upside, but GBP/USD is currently doing bearish moves and looking to consolidate below the 200 SMA. While it remains above that zone, we could expect more upside moves, but the short-term picture favors bears and we should be cautious of a possible breakout around 1.5543.
When we watch for a swing lower below the resistance level of 1.5589, we can see bearish consolidation in the H1 chart. However, a breakout to the upside will make GBP/USD to test the resistance zone around the 1.5650. The MACD indicator remains at negative territory, but the corrective moves are going to happen soon.
Daily chart's resistance levels: 1.5755 / 1.5898
Daily chart's support levels: 1.5543 / 1.5450
H1 chart's resistance levels: 1.5589 / 1.5650
H1 chart's support levels: 1.5537 / 1.5471
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 1.5589, take profit is at 1.5650, and stop loss is at 1.5530.
