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03.06.201403:18 Forex Analysis & Reviews: Daily analysis of GBP/USD for June 03, 2014

Long-term review

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Daily chart: The GBP/USD has found resistance at the 1.6766 level and now this pair is trying to complete the formation of a bearish pattern below that level, as the GBP/USD has been in a strong bearish trend from the 1.7000 level. However, if the pair manages to make a breakout at the 1.6766 level, it's expected to rise to the level of 1.6851. The MACD indicator is in negative territory.

H4 chart: The GBP/USD has moved sideways between the 1.6762 and 1.6731 levels in the last hours. However, this pair remains below the 200-day moving average, so the bearish outlook remains very strong on the GBP/USD. However, if the pair manages to make a breakout at the 1.6785 level, it's expected to rise to the level of 1.6822. The MACD indicator is in positive territory.

H1 chart: This pair remains below the 200 SMA and the resistance level of 1.6750. If the pair manages to make a breakout in the support level of 1.6700, it's expected to fall to the level of 1.6629. On the other hand, if the GBP/USD manages to make a breakout at the 1.6750 level, it's expected to rise to the resistance level of 1.6800. The MACD indicator is in neutral 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 1.6700, take profit is at 1.6629, and stop loss is at 1.6770.

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