FX.co ★ Daily analysis of GBP/USD for October 16, 2015

GBP/USD did not face any significant changes in a current trend, as it still looking for an opportunity to break above the 200 SMA zone on the daily chart, in order to do a rally towards 1.5589. Our outlook remains bearish, because the cable could perform a pullback at current levels towards the support zone of 1.5381. The MACD indicator is at the positive territory.

On the H1 chart, GBP/USD is forming a higher high pattern above the support level of 1.5458, and this would impose an outlook, which points to the upside because the resistance zone of 1.5506 could get challenged by bulls in the short term. The 200 SMA is still pointing to the upside. The MACD indicator is entering the negative territory.

Daily chart's resistance levels: 1.5589 / 1.5643

Daily chart's support levels: 1.5469 / 1.5381

H1 chart's resistance levels: 1.5506 / 1.5551

H1 chart's support levels: 1.5458 / 1.5411

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 1.5506, take profit is at 1.5551, and stop loss is at 1.5458.