04.10.201622:04 Forex Analysis & Reviews: Daily analysis of GBP/USD for October 05, 2016

Long-term review

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The sterling refreshed it's 30-year low in Tuesday's session and the weakness worsened across the board, as the pair is well consolidated below the 200 SMA on H1 chart. However, the oversold conditions are easily recognized at this stage. One could expect a rebound, at least towards the psychological level of 1.2800, but a breakout below the 1.2717 zone should open the doors to test the 1.2650 price level.

H1 chart's resistance levels: 1.2800 / 1.2850

H1 chart's support levels: 1.2717 / 1.2650

Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.2717, take profit is at 1.2650 and stop loss is at 1.2782.

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