Daily analysis of GBP/USD for July 31, 2015

On the daily chart, GBP/USD has been trading below the resistance level of 1.5640, looking for an opportunity to reach new weekly highs, but the pair is likely to remain moving sideways until a breakout over that zone takes place. There are higher
swings still to be done and bullish momentum could arise in the
next week.

GBPUSDDaily.png

Again, the cable found dynamic
support at 200 SMA in the H1 time frame without having presented the
currrent intraday bearish bias, which has been formed since July
29. That is why we expect more upside
moves. For that happen,a breakout at the level of 1.5664 should bee seen. The MACD indicator slightly is at positive territory.

GBPUSDH1.png

Daily chart’s
resistance levels: 1.5640 / 1.5777

Daily chart’s
support levels: 1.5543 / 1.5450

H1 chart’s resistance
levels: 1.5633 / 1.5664

H1 chart’s support levels:
1.5587 / 1.5562

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 1.5633, take profit is at
1.5664, and stop loss is at 1.5602.

The material has been provided by InstaForex Company – www.instaforex.com

Tags: