FX.co ★ GBPUSD: Daily analysis for September 03, 2013

Daily chart: This pair has made a successful bullish rebound from the support at the level of 1.5506. It is very likely that this is a formation of a higher low pattern, so it continues to drop. If GBPUSD manages to break this support, it is expected to fall to the level of 1.5407. On the other hand, this can mean bullish rebound strengthening in the current bullish trend in this pair and it is likely to rise to the resistance level at 1.5642. The MACD indicator remains in negative territory.

H4 chart: GBPUSD attempted to consolidate above the resistance level of 1.5604, but failed and now this pair is making a corrective move that could boost the current bullish trend in the GBPUSD, because this still remains above the 200-day moving average. If this pair does break the support at the level of 1.5512, it is expected to drop to the level of 1.5436. On the other hand, if GBPUSD manages to break the resistance at 1.5604 level it would be expected to rise to the level of 1.5698. The MACD indicator remains in positive territory, which could strengthen our bullish outlook for this pair.

H1 chart: GBPUSD remains above the 200-day moving average and support at the 1.5534 level. This pair is likely to rise to the resistance level of 1.5590 and if it manages to break that level, it is expected to rise to the level of 1.5632. Furthermore, if GBPUSD manages to break the support level of 1.5534, it will be expected to drop to the level of 1.5501. For now, there is no clear trend in this pair, due to irregular movements that this has been done in recent days. The MACD stays in negative and extreme oversold territory.

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 1.5534, take profit is at 1.5501, and stop loss is at 1.5566.