23.10.201308:43 Forex Analysis & Reviews: GBPUSD: daily analysis for October 23, 2013

Daily chart: This pair held a bullish rebound at the support level of 1.614, after having formed a lower high pattern below the resistance level of 1.6235. If the pair manages to break that level, it is expected to rise to the level of 1.6326 and bullish trend could be strengthened by a few days. However, there is still the possibility that GBPUSD will conduct a bearish rebound and fall to the level of 1.6146. The MACD indicator remains in positive territory.

H4 chart: GBPUSD is forming a lower high pattern below the resistance level of 1.6247. If this pair manages to break the 1.6262 level, it would be expected to rise to the level of 1.6345 in the medium term. On the other hand, if this pair makes a bearish rebound at current levels, it would be expected to fall to the level of 1.6164. The MACD indicator is in positive territory.

H1 chart: This pair is still below the resistance level of 1.6252 and remember that a few hours ago, the GBPUSD rallied sharply from the support level of 1.6117. If this pair manages to break the resistance level of 1.6252, it is expected to rise to the level of 1.6291. On the other hand, if the pair manages to break the support level of 1.6216, it is expected to drop to the level of 1.6170. The MACD indicator is entering negative territory.

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 1.6252, take profit is at 1.6291, and stop loss is at 1.6213.