FX.co ★ GBPUSD: Daily analysis for September 09, 2013

Daily chart: GBPUSD continues forming a lower high pattern below that strong resistance at the 1.5642 level. This level is very strong and important to the bullish trend of this pair. If the pair manages to break that level, it is expected to rise to the level of 1.5746, which will strengthen our bullish outlook for the GBPUSD pair. On the other hand, we should be alert to the bearish rebound that pair could make this week. The MACD indicator remains in neutral territory.

H4 chart: GBPUSD attempted to climb to the resistance at the 1.5698 level but fell sharply. Now, GBPUSD is forming a lower high pattern and it is very likely that this attempt to climb back up to resistance level at 1.5698 in case of success will push the pair to the level of 1.5719. On the other hand, if the pair manages to break the support at the level of 1.5604, it is expected to drop to the level of 1.5565. The MACD indicator remains in neutral territory.

H1 chart: At the end of last week, GBPUSD made a strong bullish rebound at the 200-day moving average, which led it to break the resistance level at 1.5590 and 1.5632. But the pair failed to consolidate above the 1.5632 level. Now, this pair is trying to break that level and if it succeeds, it will be expected to rise to the level of 1.5686. Furthermore, if the GBPUSD pair manages to break the support level at 1.5590, it is expected to drop to the level of 1.5534, below the SMA 200. The MACD indicator is extremely overbought and entering neutral territory.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.5632, take profit is at 1.5686, and stop loss is at 1.5578.