05.07.201623:36 Forex Analysis & Reviews: Daily analysis of GBP/USD for July 06, 2016

Long-term review

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GBP/USD tested a 31-year low and it's trying to extend the lower continuation below the 1.3000 psychological level. A rebound could drive it to test the resistance level of 1.3148, where the Cable has been trapped into a low range. The 200 SMA on H1 chart is still pointing to the downside and bears are still favored on a short-term basis.

H1 chart's resistance levels: 1.3148 / 1.3380

H1 chart's support levels: 1.3000 / 1.2858

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 1.3000, take profit is at 1.2858 and stop loss is at 1.3148.

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