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27.05.201405:32 Forex Analysis & Reviews: Daily analysis of GBP/USD for May 27, 2014

Long-term review

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Daily chart: The GBP/USD is conducting a breakout at the level of 1.6851 and now this pair could rise up to the level of 1.6900. However, caution should be exercised with the bullish momentum of this pair, as GBP/USD could make a pullback at the current levels and fall to the bullish trend line. The MACD indicator is entering neutral territory.

H4 chart: This pair is consolidating above the support level of 1.6841 and it is likely that the GBP/USD will rise to the resistance level of 1.6900 in the coming hours. For now, the bullish bias remains very strong in this pair, as the GBP/USD remains above the 200 SMA. MACD indicator is moving into positive territory.

H1 chart: The GBP/USD has made a bullish rebound above the 200 SMA, where the pair has formed a point of control. The next target for the GBP/USD is the resistance level of 1.6900. If the pair manages to make a breakout at that level, it would be expected to rise to the level of 1.6950. The MACD indicator is in positive 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 1.6900, take profit is at 1.6950, and stop loss is at 1.6850.

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