06.10.201422:50 Forex Analysis & Reviews: Daily analysis of GBP/USD for October 07, 2014

Long-term review

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On the daily chart, the GBP/USD has made a rebound at the level of 1.5959, because this pair has been very strong in the bearsh trend for several weeks, but this pair still has intentions to fall to the support level of 1.5883. Now, it is very likely that the pair will begin to form a bearish pattern behind these corrective movements on the daily chart. The MACD indicator is supporting our bearish outlook.

Daily chart's resistance levels: 1.6146 - 1.6235

Daily chart's support levels: 1.56046 - 1.5883

The GBP/USD had a significant recovery above the support level of 1.5980, so this pair is trying to make a breakout atf the resistance level at 1.6075 level on the H1 chart. The next target would be the resistance level of 1.6117. However, we would expect this pair to fall back to the support level of 1.5980, GBP/USD remains below the 200 SMA.

H1 chart's resistance levels: 1.6075 – 1.6117

H1 chart's support levels: 1.6031 – 1.5980

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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