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01.04.201403:44 Forex Analysis & Reviews: Daily analysis of GBP/USD for April 01, 2014

Long-term review

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Daily chart: This pair stays above the bullish trend line and now, the GBP/USD is trying to make a breakout on the resistance level of 1.6663. If successful, it is expected to rise to the level of 1.6766. However, keep in mind that the GBP/USD is overbought in other charts, so it is likely that this pair will begin making corrective movements. The MACD indicator is in positive territory.

H4 chart: The GBP/USD has consolidated above the support level of 1.6644. If the pair manages to make a breakout on the resistance level of 1.6667, it's expected to rise to the level of 1.6735, where the bearish trend line is. However, if the pair manages to make a breakout in the support level of 1.6644, it's expected to fall to the level of 1.6592, where the 200-day moving average is located. The MACD indicator is in the overbought zone.

H1 chart: The GBP/USD remains above the 200 SMA and now this pair is forming a POC at the current levels. For now, this pair is forming a lower high pattern to make a breakout on the resistance level of 1.6700. If successful, it is expected to rise to the level of 1.6750. 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 1.6700, take profit is at 1.6750, and stop loss is at 1.6650.

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