FX.co ★ GBPUSD: Daily analysis for August 29, 2013

Daily chart: GBPUSD is making a bullish rebound at the level of 1.5506, but is very likely to be formation of a higher low pattern. If the pair manages to break that level, it is expected to fall to the level of 1.5407. On the other hand, GBPUSD could rise again until the resistance level at 1.5642. However, this is not entirely sure because of global uncertainty around the situation in Syria. The MACD indicator is in negative territory and GBPUSD remains above the 200-day moving average.

H4 chart: This pair made a bullish rebound at the 200-day moving average and is now trying to consolidate above support at the 1.5512 level. If this pair manages to break the resistance level of 1.5604, it is expected to rise to the level of 1.5698. Furthermore, if GBPUSD manages to break the support level at 1.5411, it is expected to drop to the level of 1.5341. If GBPUSD manages to consolidate above the 1.5604 level, it is likely that the bullish trend will continue for many weeks in this pair. The MACD indicator is in positive territory.

H1 chart: GBPUSD is trying to consolidate above the Point of Control (POC), near the level of 1.5334, after it has made a bullish rebound at the level of 1.5460. If the GBPUSD manages to break the resistance at the 1.5590 level, it is expected to rise to the level of 1.5632. On the other hand, it is very likely that GBPUSD will break the support level at 1.5501 and fall back to the support at the 1.5460 level. The MACD indicator remains in positive territory and approaching extremely overbought levels.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick. The support level is at 1.5501, take profit is at 1.5460, and stop loss is at 1.5541.