FX.co ★ Daily analysis of GBP/USD for October 26, 2016

GBP/USD had a very volatile session during Tuesday, as we saw a huge decline before BoE's Carney testimony. However, when the central bank's governor started to speak, the Cable managed to recover some ground above the 1.2100 handle, and now it's consolidating the price action very close to the 1.2200 psychological level. If the pair does a breakout below the 1.2155 zone, then we can expect a bearish continuation towards the 1.2105 level.

H1 chart's resistance levels: 1.2229 / 1.2310

H1 chart's support levels: 1.2155 / 1.2105

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 1.2155, take profit is at 1.2105 and stop loss is at 1.2208.