Technical analysis of GBP/USD for August 31, 2015

Technical outlook and chart setups:

The GBP/USD pair has reversed sharply from resistance zone of 1.5700/1.5800 depicted here. The pair is further expected to drop into area around 1.5100 before reversing. Please also note that the counter trend, which begun from 1.5900, also extends at 1.5100. It is hence recommended to remain flat for now and look for an opportunity to initiate long positions around 1.5100 with risk at 1.5000. Immediate support is seen at 1.5150/60 followed by 1.5100, 1.4850, and lower while resistance is seen at 1.5800 followed by 1.5900 and higher respectively.

Trading recommendations:

Remain flat for now, look to go long around 1.5100.

Good luck!

The material has been provided by InstaForex Company –