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04.05.201511:54 Forex Analysis & Reviews: Daily analysis of GBP/USD for May 04, 2015

Long-term review

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The GBP/USD continues to trade lower below the resistance level of 1.5238 and the focus remains located at the support zone of 1.5007. The pullback made near the 200 SMA on the daily chart formed a fractal. So it could offer a new bearish journey in progress for the medium and long term. The MACD indicator is also at the overbought territory.

A lower low pattern formation is taking place below the 200 SMA and the resistance zone of 1.5155 on the H1 chart. The nearest target in the downside is located at the support level of 1.5102. If GBP/USD achieves and makes a breakout in that zone, it would be expected to fall to the level of 1.5060 and the bearish bias could strenghten in the short term.

Daily chart's resistance levels: 1.5238 / 1.5371

Dailychart's support levels: 1.5007 / 1.4874

H1 chart's resistance levels: 1.5155 / 1.5217

H1 chart's support levels: 1.5102 / 1.5060

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 1.5155, take profit is at 1.5217, and stop loss is at 1.5090.

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