FX.co ★ Daily analysis of GBP/USD for October 09, 2015

On the daily chart, we are following the bullish bias above the support level of 1.5325. Now we expect a test at the territory around around 1.5381, where the next and closest resistance is located. However, we should see some pullbacks to correct the current rally, as the cable has been working so well at current momentum.

The pair is trying to perform a consolidation above the support level of 1.5342. We expect it to reach the psychological level of 1.5400. Now, a pullback should happen at least at the support zone of 1.5285. Another scenario proposes a breakout below the support level of 1.5285 in order to reach the 200 SMA on the H1 chart.

Daily chart's resistance levels: 1.5381 / 1.5439

Daily chart's support levels: 1.5325 / 1.5256

H1 chart's resistance levels: 1.5342 / 1.5400

H1 chart's support levels: 1.5282 / 1.5223

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 1.5342, take profit is at 1.5400, and stop loss is at 1.5285.