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03.04.201404:21 Forex Analysis & Reviews: Daily analysis of GBP/USD for April 03, 2014

Long-term review

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Daily chart: This pair has found resistance at the 1.6663 level, where the GBP/USD formed a fractal. Now, this pair is forming a lower high pattern below that level, since the GBP/USD has started performing corrective movements. If the pair manages to make a breakout at that level, it would be expected to rise to the level of 1.6766. The MACD indicator is in positive territory.

H4 chart: The GBP/USD remains above the 200-day moving average, but again this pair found resistance near the 1.6644 level. If the pair manages to make a breakout at that level, it would be expected to rise to the level of 1.6667 . However, chances are that the GBP/USD falls to the 200 SMA. The MACD indicator is in negative territory.

H1 chart: This pair remains within the range of volatility point of control. The GBP/USD is trying to make a breakout on the resistance level of 1.6629. If successful , it is expected to rise to the level of 1.6700. On the other hand, if the pair manages to consolidate below the 200-day moving average, it's expected to fall to the support level of 1.6578. 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 1.6629, take profit is at 1.6700, and stop loss is at 1.6559.

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