FX.co ★ GBPUSD: Daily analysis for June 21, 2013

Daily chart: The GBPUSD pair continues forming a higher low pattern below the 200-day moving average and the support level 1.5506. In yesterday's session, the pair fell again to touch the support level at 1.5407, but quickly the cable backed up to the level of 1.5506. If the GBPUSD pair rebounds at this level, we would expect it to fall back to the support level of 1.5407. On the other hand, if the price closes GBPUSD this week above the 200-day moving average, it is expected to go up to the resistance level 1.5642. The MACD indicator is in negative and in extreme overbought territory, so expect this pair to make very slow movements for today's session.

H4 chart: The GBPUSD pair made a bullish rebound on the moving average of 200 and the support at the 1.5411 level. Now, the GBPUSD pair is trying to break the resistance at the 1.5512 level, if successful it is expected to rise to the level of 1.5604. On the other hand, if GBPUSD bearish makes a rebound in the current price, it is expected to fall to support at the 1.5411 level, which houses the 200-day moving average. We must be cautious because the MACD indicator is extremely oversold and thus it would be expected to follow GBPUSD forming a higher low pattern in today's session.

H1 chart: Because of the deep fall that GBPUSD had two days ago, a strong Point of Control (POC) near the support at the 1.5460 level was formed, it has prevented the GBPUSD pair from further fall. Now, the GBPUSD pair is trying to consolidate above the resistance level of 1.5501. If the GBPUSD pair manages to break the resistance at the 1.5534 level, it is expected to rise to the level of 1.5590, which houses the 200-day day moving average. On the other hand, if the GBPUSD pair manages to break the 1.5460 level it would be expected to fall to the level of support 1.5406. The MACD indicator remains in positive territory and GBPUSD stays below the 200-day moving average.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks with a bearish candlestick, the support level is at 1.5460, take profit is at 1.5406, and stop loss is at 1.5511. Place buy (long) orders only if the GBP/USD pair breaks with a bullish candlestick, the resistance level is at 1.5534, take profit is at 1.5590, and stop loss is at 1.5477.