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01.12.201401:08 Forex Analysis & Reviews: Daily analysis of GBP/USD for December 01, 2014

Long-term review

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The GBP/USD pair has had a strong fall below the resistance level of 1.5746, because this pair is trying to continue the bearish trend in the medium term. If the GBP/USD pair manages to form another fractal at the current levels, this pair is likely to rise up again to the level of 1.5746. Now, the MACD indicator is entering the overbought area.

Dailychart's resistance levels: 1.5746 / 1.5883

Dailychart's support levels: 1.5642 / 1.5506

In the H1 chart, the GBP/USD pair has made a rebound at the support level of 1.5632. The GBP/USD pair may perform a retracement to the 1.5686 level, which is below the 200-day moving average. However, this pair has been very solid in the current bearish trend from the November 27's session, so we could see this pair drop to the level of 1.5590. The MACD indicator is entering the oversold area.

H1 chart's resistance levels: 1.5739 / 1.5810

H1 chart's support levels: 1.5686 / 1.5632

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 1.5632, take profit is at 1.5590, and stop loss is at 1.5672.

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