FX.co ★ GBPUSD: Daily analysis for June 07, 2013

Daily chart: The yesterday's session was very bullish for the GBPUSD pair, breaking the resistance level at 1.5523 and touching the resistance level at 1.5642. The general trend in this pair has changed dramatically during this week, where the fundamental news has helped the recovery of the pound against the other currencies. Now, GBPUSD remains above the SMA 200 and is trying to form a lower high pattern, below the resistance level of 1.5642. If the GBPUSD pair manages to break that resistance, it would be expected to rise to the level of 1.5795. On the other hand, if the GBPUSD pair does a bearish rebound in that resistance, it would be expected to fall to the level of 1.5523. The MACD indicator is in positive territory and is not yet showing signs of overbought.

H4 chart: The GBPUSD pair is forming a lower high pattern, below the resistance level of 1.5675, after having made a bearish rebound at that level. We must be careful because about current price of this pair, there are 2 resistances levels and a bullish trend line, which could slow the bullish path for this pair today. We would expect consolidation movements for today in this pair, because of such broad movements that have had this week. GBPUSD remains above the 200-day moving average and the MACD indicator is approaching overbought levels.

H1 chart: As in the H4 chart, the cable is forming a lower high pattern, the resistance below the level of 1.5632. Keep in mind that this pair formed two fractals, one above the resistance level at 1.5686, and the other below the support level at 1.5590, so intraday trading signals for this pair are very clear. If the GBPUSD pair manages to break the resistance at the 1.5632 level, it is expected to rise to the level of 1.5686. Furthermore, if the GBPUSD pair manages to break the support level of 1.5590, it is expected to drop to the level of 1.5534. The MACD indicator is in extreme overbought and now is entering negative territory. GBPUSD remains above the 200-day moving average, which supports a bullish outlook for this pair, in the short term.

Fundamental outlook: For today's session, Non-Farm Employment Change (Previous: 165K / Forecast: 167K) and the Unemployment Rate (Previous: 7.5% / Forecast: 7.5%) will be published in the United States at 12:30 GMT. If the current reading is lower than the forecast, the GBPUSD pair could do bullish movements during the hour.



Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks with a bullish candlestick, the resistance level is at 1.5686, take profit is at 1.5739, and stop loss is at 1.5633.