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12.11.201401:13 Forex Analysis & Reviews: Daily analysis of GBP/USD for November 12, 2014

Long-term review

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At the H4 chart, the GBP/USD pair made a bullish consolidation above the support level of 1.5874. The next goal on the bullish road would be the resistance level of 1.5951. We must highlight the fact that this pair has been following the bearish bias for several weeks. So, it's normal to see these corrective movements. The MACD indicator remains in the positive territory.

H4chart's resistance levels: 1.5951 / 1.6004

H4chart's support levels: 1.5874 / 1.5811

On the H1 chart, we can see that this pair is forming a higher high pattern below the resistance level of 1.5925. The resistance level is located at the 200-day moving average, which is currently serving as dynamic resistance. So, this pair could make a pullback at the current levels and resume the bearish bias. On the other hand, if the pair manages to consolidate above this resistance level, it's expected to rise to the level of 15980.

H1 chart's resistance levels: 1.5925 / 1.5980

H1 chart's support levels: 1.5871 / 1.5810

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 1.5871, take profit is at 1.5810, and stop loss is at 1.5931.

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