FX.co ★ Daily analysis of GBP/USD for May 20, 2015

GBP/USD is extending losses on the daily chart, because we observe a kind of consolidation below the 200 SMA. The pair is pointing to a fall until the support level of 1.5346 in coming days. That pullback, mentioned in the recent articles, has already advised us about the possibility of a bearish continuation for the medium term.

The short-term outlook remains unchanged, because GBP/USD continues to trade lower below the resistance zone of 1.5513. Currently, in the H1 time-frame, it's forming a lower low pattern which could give us more short trades opportunities to execute during the rest of the week. Of course, bear in mind support around the levels of 1.5443 and 1.5355.

Daily chart's resistance levels: 1.5543 / 1.5745

Dailychart's support levels: 1.5346 / 1.5199

H1 chart's resistance levels: 1.5513 / 1.5597

H1 chart's support levels: 1.5443 / 1.5355

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 1.5443, take profit is at 1.5355, and stop loss is at 1.5533.