21.03.201404:48 Forex Analysis & Reviews: Daily analysis of GBP/USD for March 21, 2014

Long-term review

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Daily chart: GBP/USD made a breakout at the support level of 1.6540, so it is very likely that during today's session, the pair will begin to form a bearish pattern since the GBP/USD had a recent lateralized drop days ago. The objective of this pair in our bearish outlook is bullish trend line near the 1.6447 level. The MACD indicator is in negative territory.

H4 chart: The GBP/USD is forming a bearish pattern below the resistance level of 1.6516. If the pair manages to make a breakout at that level, it would be expected to rise to the level of 1.6583. On the other hand, if the pair manages to make a breakout at the support level of 1.6483, it's expected to fall to the level of 1.6435. The MACD indicator is oversold.

H1 chart: This pair has moved into a low range in the last hours after the GBP/USD has found resistance at the 1.6544 level. If the pair manages to make a breakout at the support level of 1.6464, it's expected to fall to the level of 1.6419. On the other hand, it is very likely that this pair continues to move slowly through the day. The MACD indicator is in positive territory.

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 1.6464, take profit is at 1.6419, and stop loss is at 1.6510.

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