FX.co ★ Daily analysis of GBP/USD for February 29, 2016

The pair is forming a lower low pattern on H1 chart after a strong decline from the 1.4000 level. Now, we could see a bearish formation that could make GBP/USD test new lows on a short-term basis. The 200 SMA is still pointing to the downside and the Cable may see some little rebounds in the process. MACD indicator is reaching oversold conditions, so that scenario could be possible to happen.

H1 chart's resistance levels: 1.3963 / 1.4069

H1 chart's support levels: 1.3878 / 1.3740

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.3878, take profit is at 1.3740, and stop loss is at 1.4014.