16.02.201502:15 Forex Analysis & Reviews: Daily analysis of GBP/USD for February 16, 2015

Long-term review

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Last Friday was a bit slow for the GBP/USD pair, as the pair continues trading in favor of the bullish bias. The next target is located at the resistance level of 1.5491. But at the moment, we're still waiting for a higher high pattern formation, because the bullish momentum that the pair had last week was big and pushed it to reach overbought levels in lower time frames.

On the H1 chart, we're still watching consolidation moves of the GBP/USD pair below the resistance level of 1.5413. Currently, the pair is forming a bullish pattern that could be done when a breakout happens at the 1.5413 level, with a target located on the upside at the 1.5526 level. Still, the 200 SMA on H1 chart is bullish.

Daily chart's resistance levels: 1.5491 / 1.5761

Dailychart's support levels: 1.5247 / 1.5025

H1 chart's resistance levels: 1.5413 / 1.5526

H1 chart's support levels: 1.5378 / 1.5348

Trading recommendations for today: Based on the H1 chart, place long (buy) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.5413, take profit is at 1.5526, and stop loss is at 1.5297.

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