FX.co ★ Daily analysis of GBP/USD for July 21, 2015

GBP/USD has been trading above the 200 SMA, looking for an opportunity to reach the resistance level of 1.5640, a zone which was tested during the last week. However, we should be aware of a breakout at the support level of 1.5543 that could change the focus to the downside (more specific at the level of 1.5450). The MACD indicator is at neutral territory.

On the H1 chart, the pair continues performing lower swings and now it is trading below the 200 SMA with a possible bearish pattern. If GBP/USD successfully achieves that pattern, it would be expected to test the support level of 1.5524. In the bullish side, a breakout above the level of 1.5596 will open doors to visit the price zone around 1.5639.

Daily chart's resistance levels: 1.5640 / 1.5755

Daily chart's support levels: 1.5543 / 1.5450

H1 chart's resistance levels: 1.5596 / 1.5639

H1 chart's support levels: 1.5524 / 1.5485

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 1.5596, take profit is at 1.5639, and stop loss is at 1.5554.