FX.co ★ Daily analysis of GBP/USD for July 07, 2015

GBP/USD found bottom around the 200 SMA on the daily chart and now we could expect some kind of rebound over there in order to reach the resistance level of 1.5755. However, if the pair does a breakout at the support level of 1.5543, it would be expected to test a low around 1.5450. The MACD indicator is still at negative territory.

On the H1 chart, GBP/USD was rejected by the support level of 1.5537 and it would be expected to reach the resistance level of 1.560 where the 200 SMA is located in this time frame. That moving average could serve as dynamic resistance because the pair is still weak in the short term, but the current structure could turn bullish if a breakout above the 1.5650 level happens.

Daily chart's resistance levels: 1.5755 / 1.5898

Daily chart's support levels: 1.5543 / 1.5450

H1 chart's resistance levels: 1.5589 / 1.5650

H1 chart's support levels: 1.5537 / 1.5471

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 1.5650, take profit is at 1.5688, and stop loss is at 1.5611.