The pair is consolidating the price action below the 200 SMA after having found a strong resistance at the 1.3589 level. So far, the next target to reach should be the support zone of 1.3451, at which a breakout should expose the December 26th lows. However, if GBP/USD manages to rebound at the current stage, then it can reach the 1.3589 level.
H1 chart’s resistance levels: 1.3589 / 1.3700
H1 chart’s support levels: 1.3526 / 1.3451
Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.3589, take profit is at 1.3700 and stop loss is at 1.3480.
The material has been provided by InstaForex Company – www.instaforex.com