27.07.201501:06 Forex Analysis & Reviews: Daily analysis of GBP/USD for July 27, 2015

Long-term review

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GBP/USD is still trading above the key support level of 1.5450, waiting to see more patterns that cleans the road to follow during the next days. We have been calling for a downside on this pair, but it seems that the support zone remains rather strong at current levels, and that is why we should expect a breakout above the resistance level of 1.5543 if bulls gets stronger in coming hours.

On the H1 chart, GBP/USD was rejected by support zone of 1.5472 and it is also trying to break the resistance level of 1.5524. Also, the pair is forming a lower low pattern, which could fail when the breakout mentioned above happens. If case of success, it would open the way to test the 200 SMA. The MACD indicator remains in the positive territory.

Daily chart's resistance levels: 1.5543 / 1.5640

Daily chart's support levels: 1.5450 / 1.5332

H1 chart's resistance levels: 1.5524 / 1.5568

H1 chart's support levels: 1.5502 / 1.5472

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 1.5524, take profit is at 1.5568, and stop loss is at 1.5481.

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