FX.co ★ GBP/USD daily analysis for July 03, 2013

Daily chart: The GBP/USD is trying to break the support at the 1.5159 level. Now, this pair is approaching the bullish trend line near 1.5097 level. If the cable does break this trend line, it is likely to fall to the level of support 1.5023. On the other hand, if the GBP/USD manages to make a bullish rebound at current levels, it is seen to rise to the level of 1.5266. The GBP/USD stays below the 200 day moving average and the MACD indicator remains in a negative territory, but gradually is approaching oversold levels.

H4 chart: The GBP/USD is forming a higher low pattern over the support at the level of 1.5148. If the pair manages to break that level, it is expected to fall to the level of 1.5032, which is very likely. However, if the cable achieves in consolidate above the resistance at the 1.5195 level, it is expected to rise to the level of 1.5260. The GBP/USD stays below the 200 day moving average, so our bearish outlook for this pair is still valid, but the MACD indicator is in a neutral territory, so we recommend cautious approach to this pair.

H1 chart: A strong support has formed near the 1.5146 level, which has led to the formation of a higher low pattern on GBP/USD. If the GBP/USD manages to break that level, it is expected to fall to the level of 1.5119. On the other hand, it is very possible that the GBP/USD will conduct a bullish rebound at current levels and achieve up to resistance level at 1.5198. The MACD indicator is extremely oversold and is entering a positive territory, indicating a strong hesitation in defining the trend of this pair in the short term.

Fundamental outlook: For today's session, the Services PMI will be published (Previous: 54.9 / Forecast: 54.6) at 08:30 GMT in the UK.

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 1.5146, take profit is at 1.5119, and stop loss is at 1.5174.