29.10.201400:39 Forex Analysis & Reviews: Daily analysis of GBP/USD for October 29, 2014

Long-term review

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The GBP/USD has made a pullback to the 200-day moving average, which is near the resistance level of 1.6183 on the H1 chart, so it is very likely that this pair will fall back to the support level of 1.6051. The GBP/USD has formed a fractal at 200 SMA so the bullish road could lose momentum in the coming hours, and this pair has not finished forming the bullish pattern. The MACD indicator is entering neutral territory.

H4 chart's resistance levels: 1.6183/1.6226

H4chart's support levels: 1.6051/1.6004

On the H1 chart, GBP/USD made a strong pullback at the resistance level of 1.6170, although the pair remains above the support level of 1.6117. This could mean that the GBP/USD is still very much bullish force and is likely to go up again to the resistance level of 1.6170. However, caution should be exercised, because the MACD indicator is moving into negative territory.

H1 chart's resistance levels: 1.6170 / 1.6216

H1 chart's support levels: 1.6117 / 1.6075

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 1.6170, take profit is at 1.6216, and stop loss is at 1.6127.

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