FX.co ★ Daily analysis of GBP/USD for April 01, 2015

At the daily chart, bears remain in the control of the GBP/USD overall trend, thanks to the current price action. That is forming bearish patterns. The downside target is still located at the support zone of 1.4649. We expect the GBP/USD pair to test that zone in order to make a possible bearish breakout. The MACD indicator is at a neutral territory.

At yesterday's session, we saw a pullback at the 200 SMA in the H1 chart, as the pair was trying to fall to the support level of 1.4721 again, which has not been visited from the March 20 session. Now, one would expect a lower low pattern formation at the current levels, in order to reach new lows in the short and medium terms.

Daily chart's resistance levels: 1.4820 / 1.4948

Dailychart's support levels: 1.4649 / 1.4505

H1 chart's resistance levels: 1.4842 / 1.4921

H1 chart's support levels: 1.4774 / 1.4721

Trading recommendations for today: Based on the H1 chart, place short (sell) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.4774, take profit is at 1.4721, and stop loss is at 1.4825.