FX.co ★ GBPUSD: Daily analysis for September 05, 2013

Daily chart: In yesterday's session, GBPUSD made a strong bullish movement and now this pair is trying to break the resistance level at 1.5642. If it is successful, it is expected to rise to the level of 1.5746. We should note that this resistance is very strong and weeks ago the pair tried to break this resistance but failed. However, this is expected to begin to form a lower high pattern. The MACD indicator is entering neutral territory, having come from an area of extreme oversold.

H4 chart: GBPUSD is forming a lower high pattern, after having overcome the resistance level at 1.5604. This pair is expected to rise to the resistance level of 1.5698. On the other hand, if the pair fails to make a bearish rebound at the current levels, it will be expected to fall to the level of 1.5512. However, the GBPUSD remains very strong in the current bullish trend, so we recommend to follow this trend. The MACD indicator remains in positive territory.

H1 chart: This pair broke the resistance at the 1.5590 level. If this pair manages to break the resistance level of 1.5632, it is expected to rise to the level of 1.5686. Moreover, if this pair breaks the support at the level of 1.5590, it is expected to fall to the level of support 1.5534. As long as GBPUSD stays above the 200-day moving average, our overall outlook for this pair remains bullish. The MACD indicator is in negative territory, but is likely to start entering oversold.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullishh candlestick; the resistance level is at 1.5632, take profit is at 1.5686, and stop loss is at 1.55478.