FX.co ★ GBPUSD: Daily analysis for June 10, 2013

Daily chart: The GBPUSD pair is trying to make consolidation's movements above support at the 1.5506 level, after having had a very bullish week. It is quite possible that during this week this pair forms a lower high pattern in order to try to break the resistance level at 1.5642. If the pair manages to break this resistance, it is expected to rise to the level of 1.5795. The overall outlook for this pair remains very bullish, so I recommend just looking at bullish patterns to place buy orders in this pair. Anyway, if GBPUSD manages to break the support at the 1.5506 level, it is expected to fall to the level of 1.5407. The MACD indicator remains in positive territory, but is showing some weakness in the bullish trend of the moment, something which is very normal because of lateralized rise that this pair had.

H4 chart: This pair remains above the 200-day moving average and above the support at the 1.5411 level. Clearly, in this chart, the GBPUSD pair is forming a lower high pattern, trying to climb to the level of 1.5675. If the pair manages to break that level, it is expected to rise to the level of 1.5826. However, keep in mind that there are several bullish trend lines on the road, making resistance on this pair, so we recommend caution when placing buy orders below the 1.5675 level. However, it is possible that the GBPUSD pair may fall to the level of 1.5411 and make a bullish rebound there. The MACD indicator is entering negative territory and is in extreme overbought.

H1 chart: At the current price, it is forming a Point of Control (POC), so we must be very careful when we go to put orders between the range of 1.5590 and 1.5501. If GBPUSD manages to break the resistance at the 1.5590 level, it is expected to rise to the level of 1.5632. Furthermore, if GBPUSD manages to break the support level at 1.5501, it is expected to drop to the level of 1.5460. These levels are very strong, so we could see rebounds in this pair, at a technical level. GBPUSD remains above the 200-day moving average, so our intraday outlook remains bullish. The MACD indicator is in negative territory, but approaching oversold levels.

Fundamental outlook: For today's session, we do not expect economic events will have considerable impact on GBPUSD, and we believe that this session will be of low volatility.

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 1.5590, take profit is at 1.5630, and stop loss is at 1.5551. Place sell (short) orders only if the GBP/USD pair breaks with a bearish candlestick, the support level is at 1.5501, take profit is at 1.5460, and stop loss is at 1.5544.