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06.10.201402:28 Forex Analysis & Reviews: Daily analysis of GBP/USD for October 06, 2014

Long-term review

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The GBP/USD continues to weaken in the H4 chart, so this pair is trying to consolidate below the resistance level of 1.6004, so it is very likely that the GBP/USD also finds support at the 1.5900 level, where one bearish trend line is. This decline was driven by the positive indicators of employment in the United States, published last Friday.

H4 chart's resistance levels: 1.6004 - 1.6051

H4 chart's support levels: 1.5811 - 1.698

On the H1 chart, we can clearly see the strength of the current bearish trend for GBP/USD as this pair is forming a lower low pattern below the resistance level of 1.5980. Now, it is likely that the GBP/USD will try to make a correction of its current trend, due to the steep fall that this pair had last Friday. The next target for the GBP/USD on the downside is the support level of 1.5925. The MACD indicator is oversold.

H1 chart's resistance levels: 1.5980 – 1.6031

H1 chart's support levels: 1.5925 – 1.5871

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 1.5925, take profit is at 1.5871, and stop loss is at 1.5980.

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