26.02.201403:21 Forex Analysis & Reviews: Daily analysis of GBP/USD for February 26, 2014

Long-term review

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Daily chart: The GBP/USD has positioned above the support level of 1.6663, but this move could be the continuation of the formation of a higher low pattern. However, remember that this pair has been in a strong bullish bais in recent weeks, so caution should be used when placing sell orders, as the overall outlook for this pair remains bullish. The MACD indicator is entering neutral territory.

H4 chart: This pair remains above the support level of 1.6667. Now, it is very likely that this pair will continue making bullish movements. If GBP/USD manages to make a bullish breakout in the trend line near the 1.6750 level, it's expected to rise to the level of 1.6822. For now, we recommend to follow the bullish bias. The MACD indicator is entering neutral territory.

H1 chart: The GBP/USD remains above the 200-day moving average, but during the American session yesterday, the pair met with strong resistance at 1.6700, which is located one point of control. If the pair manages to consolidate above this level, it would be expected to rise to the level of 1.6750. On the other hand, if the pair manages to make a breakout at the support level of 1.6629, it's expected to fall to the level of 1.6578. The MACD indicator is still 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 1.6700, take profit is at 1.6750, and stop loss is at 1.6650.

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