12.02.201401:53 Forex Analysis & Reviews: Daily analysis of GBP/USD for February 12, 2014

Long-term review

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Daily chart: The pair managed to touch the resistance level of 1.6447 and is now forming a lower high pattern. If the pair manages to make a breakout at that level, it would be expected to rise to the level of 1.6540. However, it is very likely that during this week, GBP/USD is starting making corrective movements, although the bullish bias remains strong. The MACD indicator is in neutral territory.

H4 chart: GBP/USD is below the resistance level of 1.6483 and near that level, this pair formed a fractal. For now, the bullish trend remains strong, as the GBP/USD remains above the 200 SMA. If the pair manages to break the resistance level of 1.6483, it's expected to rise to the level of 1.6516 . Moreover, if this pair does break the support level of 1.6435, it is expected to fall to the level of 1.6336. The MACD indicator is in positive territory.

H1 chart: This pair remains above the point of control and 200 SMA, which are located near the the 1.6400 level. Now, the GBP/USD is forming a bullish pattern above the support level of 1.6419. If the pair manages to break the resistance level of 1.6464, it's expected to rise to the level of 1.6507. Moreover, if this pair does break the support level of 1.6419, it is expected to fall to the level of 1.6375. The MACD indicator is in negative territory.

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 1.6464, take profit is at 1.6507, and stop loss is at 1.6422.

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