FX.co ★ Daily analysis of GBP/USD for October 06, 2015

GBP/USD performed a pullback around the resistance level of 1.5169 on the daily chart, and we should note this move could unleash the bearish force towards support zone of 1.5030. However, the pair has enough bearish momentum to continue doing towards new lows across the board in the mid-term. The MACD indicator is reaching the oversold territory.

On the H1 chart, GBP/USD found strong resistance in the zone around the 200 SMA. The next support located at the level of 1.5103 could be tested in order to perform a breakout and to reach new significant lows in an intraday basis. That is why we consider the current structure a trend-continuation one.

Daily chart's resistance levels: 1.5169 / 1.5256

Daily chart's support levels: 1.5030 / 1.4955

H1 chart's resistance levels: 1.5223 / 1.5284

H1 chart's support levels: 1.5166 / 1.5103

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the resistance level is at 1.5166, take profit is at 1.5103, and stop loss is at 1.5229.