18.08.201500:27 Forex Analysis & Reviews: Daily analysis of GBP/USD for August 18, 2015

Long-term review

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On the daily chart, GBP/USD made a pullback at the resistance level of 1.5640 and the ground is ready for a test around 200 SMA, exactly at the support zone of 1.5543. Remember that a breakout there to the downside will enable the pair to visit the support level of 1.5450 on a mid-term basis. MACD indicator is entering the neutral territory.

The short-term outlook is calling for a rebound at the support level of 1.5587, where the 200 SMA is located on the H1 chart. This scenario is possible thanks to the overall trend, which the GBP/USD pair is following on a long-term basis, but we shouldn't discard a breakout towards the support level of 1.5532 in the coming hours.

Daily chart's resistance levels: 1.5640 / 1.5761

Daily chart's support levels: 1.5543 / 1.5450

H1 chart's resistance levels: 1.5632 / 1.5679

H1 chart's support levels: 1.5587 / 1.5532

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 1.5632, take profit is at 1.5679, and stop loss is at 1.5583.

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