FX.co ★ GBPUSD: Daily analysis for September 11, 2013

Daily chart: GBPUSD hit the resistance at the 1.5746 level and now this pair is trying to form a lower high pattern to continue rising. Remember that if the pair manages to break that level, it will be expected to rise to the level of 1.5883, which will strengthen the current bullish trend in GBPUSD. On the other hand, if GBPUSD fails to make a bearish rebound at the current levels, it will be expected to fall to support at the 1.5642 level. The MACD indicator is in positive territory.

H4 chart: This pair were able to consolidate above support at the 1.5719 level and now this pair is trying to break that level again. If it is successful, it is expected to fall to the level of 1.5698. On the other hand, if the GBPUSD pair manages to break the resistance level at 1.5752, it is expected to rise to the level of 1.5811, where we cam see very strong resistance. The MACD indicator is entering extremely overbought zone and in neutral territory, so we should be cautious with this bullish pattern that is forming currently.

H1 chart: The GBPUSD pair stays below the resistance level of 1.5739, but the current bullish trend remains very strong in this chart. Around this resistance, two fractals have formed, which are making strong resistance in this pair. If the GBPUSD pair manages to break that level, it will be expected to rise to the level of 1.5810. On the other hand, if the pair manages to break the support at the level of 1.5686, it is expected to drop to the level of 1.5632, which houses the SMA 200. The MACD indicator remains in negative territory, so we should be cautious.

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 1.5739, take profit is at 1.5810, and stop loss is at 1.5669.