09.07.201502:08 Forex Analysis & Reviews: Daily analysis of GBP/USD for July 09, 2015

Long-term review

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On the daily chart, GBP/USD continues to trade lower. Now, it is looking for an opportunity to break the support level of 1.5327 in order to achieve 1.5243. The current structure is still caling for the upside in this time frame because the pair hasn't break the invalidation zone at 1.5243 yet in order to invalidate our overall bullish outook.

GBP/USD is forming a lower low pattern in the H1 chart and the current price action is calling for more falls in the short term. However, bear in mind that the pair is still weak but oversold in lower time frames. That is why we would like to see a bullish corrective move accross at least the resistance of 1.5412.

Daily chart's resistance levels: 1.5450 / 1.5543

Daily chart's support levels: 1.5327 / 1.5243

H1 chart's resistance levels: 1.5363 / 1.5412

H1 chart's support levels: 1.5329 / 1.5269

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 1.5329, take profit is at 1.5269, and stop loss is at 1.5388.

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