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

On the daily chart, GBP/USD is already doing a deep pullback from the resistance level of 1.5371 after forming a fractal on the last high. Now, we could expect testing of the support zone of 1.5007 only if the pair does a breakout in the zone of 1.5238 to the downside. The MACD indicator is entering an overbought territory.

GBP/USD is already strong in the current bearish bias because the pair is trading on the 200 SMA on the H1 chart. It could be offering dynamic support or just another dynamic pivot that could accelerate the bearish momentum. In our outlook on the intraday basis, GBP/USD could start to trade in sideways during the next week.

Daily chart's resistance levels: 1.5238 / 1.5371

Dailychart's support levels: 1.5007 / 1.4874

H1 chart's resistance levels: 1.5217 / 1.5313

H1 chart's support levels: 1.5155 / 1.5102

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 1.5217; take profit is at 1.5313; and stop loss is at 1.5123.