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08.12.201423:49 Forex Analysis & Reviews: Daily analysis of GBP/USD for December 09, 2014

Long-term review

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The GBP/USD pair failed to consolidate below the support level of 1.5589 on H4 chart, where the pair made a rebound and formed a new fractal to try to climb back up to resistance level of 1.5698. As we can see, the GBP/USD pair remains strong in the current bearish bias and it is likely to decline further to the support level of 1.5512 in the medium term.

H4chart's resistance levels: 1.5698 / 1.5811

H4chart's support levels: 1.5589 / 1.5512

On the H1 chart, GBP/USD performed a breakout at the level of 1.5632 and is now finding dynamic resistance in the 200-day moving average. So, eventually, this pair could make a pullback pair to the level of 1.5632. This is reinforced by the fact that the area of 1.5686 is very strong and has served as strong resistance on the GBP/USD pair. The MACD indicator remains in the positive territory.

H1 chart's resistance levels: 1.5590 / 1.5632

H1 chart's support levels: 1.5534 / 1.5501

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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