Technical analysis of GBP/USD for July 31, 2015

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Overview:

  • The GBP/USD pair has rebounded from the major resistance set at the level of 1.5641, and now it is approaching its resistance in order to test it again. Moreover, it should be noted that the level of 1.5641 represents the weekly resistance 1 in the last day of July. It will be a good sign to sell at this spot with the first target at 1.5578 to form the double bottom and continue towards 1.5551 (it should be noted that this level will form the daily support). On the other hand, in case of a break of 1.5660, a good place for stop loss will be above the level of 1.5690.

Forecast:

  • According to the previous events, the GBP/USD pair is still moving between 1.5641 and 1.5550.
  • The level of 1.5578represents the double bottom, and the daily support 1 is set at 1.5550. But the strong resistance is placing at 1.5641. Sell below the level of 1.5641 in the long term with the first target at 1.5580. If the trend manages to break the double bottom at 1.5580; it might resume to 1.5550.

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

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