FX.co ★ Daily analysis of GBP/USD for October 01, 2015

On the daily chart, bears are still riding the current bias in GBP/USD, which is looking for an opportunity to find bottom around the level 1.5030 in the mid-term. That is why the bearish outlook is still valid, and the cable could start to form lower low patterns. The 200 SMA is slightly bearish.

The short-term outlook remains favoring the downside, but we are watching for some breakouts lower, and this is an indicator that the GBP/USD pair could start moving towards higher levels in coming hours. But while it continues trading below the 200 SMA at the H1 chart, our outlook will stay intact.

Daily chart's resistance levels: 1.5169 / 1.5256

Daily chart's support levels: 1.5030 / 1.4955

H1 chart's resistance levels: 1.5166 / 1.5223

H1 chart's support levels: 1.5103 / 1.5035

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the resistance level is seen at 1.5103, take profit is at 1.5035, and stop loss is at 1.5176.