19.05.201407:14 Forex Analysis & Reviews: Daily analysis of GBP/USD for May 19, 2014

Long-term review

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Daily chart: The GBP/USD is trying to make a correction in its current bearish trend, as this pair has made a bullish rebound above the support level of 1.6766. If the pair manages to make a breakout at the resistance level of 1.6851, the bullish bias on GBP/USD could return to the medium and long term. The MACD indicator is in negative territory.

H4 chart: This pair is consolidating above the 200-day moving average, but the GBP/USD has formed a fractal at the resistance level of 1.6841, which could be an impediment to the development of the bullish bias. However, if the GBP/USD manages to make a breakout at that level, it would be expected to rise to the level of 1.6900. The MACD indicator is in positive territory.

H1 chart: GBP/USD is facing resistance at the 200-day moving average, so it is very likely that this pair will make a bearish rebound at that level and fall to the support level of 1.6800. If GBP/USD manages to make a breakout at that level, it would be expected to fall to the level of 1.6750, which is close to the point of control. The MACD indicator is in negative 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 1.6800, take profit is at 1.6750, and stop loss is at 1.6850.

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