04.09.201402:50 Forex Analysis & Reviews: Daily analysis of GBP/USD for September 04, 2014

Long-term review

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Daily chart: The GBP/USD pair remains strong in the bearish trend due to the fact that this pair is forming a bearish pattern above the support level of 1.6447. If this pair consolidates below that level, the next target would be the 1.6326 level, which would be a strong bearish consolidation.

H4 chart: This pair is trying to form a bearish pattern above the support level of 1.6435. However, GBP/USD is likely to attempt to perform a rebound from the current levels and rise to the resistance level of 1.6553. However, if the GBP/USD pair manages to make a breakout at the support level, it is expected to fall to the 1.6247 level. The MACD indicator remains in the negative territory.

H1 chart: The GBP/USD pair is trying to consolidate below the 1.6464. So, this pair could fall up to the support level of 1.6419 within several hours. If GBP/USD manages to make a breakout at that level, it is expected to fall to the level of 1.6375. The MACD indicator stays in the positive 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 1.6578, take profit is at 1.6544, and stop loss is at 1.6611.

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