Daily Analysis of GBP/USD for May 31, 2016
As we expected, GBP/USD is doing a rebound above the 200 SMA on the H1 chart, in an effort to resume the bullish bias toward new highs on a short-term basis. The next resistance is still placed at the 1.4662 level, where a breakout should happen for further momentum in favor of the upward trend. The MACD indicator is showing weakness in the current movement, but we still stay with the bullish outlook.
H1 chart's resistance levels: 1.4662 / 1.4692
H1 chart's support levels: 1.4604 / 1.4566
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 1.4662, take profit is at 1.4692, and stop loss is at 1.4631.