FX.co ★ GBPUSD: Daily analysis for September 12, 2013

Daily chart: GBPUSD is attaining the resistance level at 1.5746 to break it, after this pair has tried to break this level for several times already. Now, the bullish trend has strengthened in this pair and it is likely that GBPUSD rises to the resistance level at 1.5883 in the coming days. However, it is very likely that GBPUSD starts to form a lower high pattern, because this pair has gone up significantly in the recent days. The MACD indicator remains in positive territory, which strengthens our bullish outlook for this pair.

H4 chart: GBPUSD is trying to consolidate above support at the level of 1.5811, after having broken off resistance at the 1.5752 level, where it formed a lower high pattern. It is very likely that this pair rises to the level of 1.6005, which is located at one bullish trendline, which is making a stand in this pair. On the other hand, if this pair makes a bearish rebound at the current levels, it will be expected to fall to the level of 1.5752. The MACD indicator remains in positive territory, but it is entering extremely overbought area.

H1 chart: This pair managed to break the resistance at the 1.5739 level and it is now trying to consolidate above the resistance at 1.5810. This pair is likely to rise to the resistance level at 1.5871. On the other hand, it is also likely that GBPUSD falls to support at the 1.5739 level, but this pair is still holding strong in the current bullish trend. The MACD indicator is in extreme overbought area and entering negative territory. GBPUSD remains above the 200-day moving average, which strengthens our bullish outlook.

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 1.5871, take profit is at 1.5966, and stop loss is at 1.5775.