FX.co ★ GBPUSD: Daily analysis for September 17, 2013

Daily chart: The GBPUSD pair continues to fall and is about to touch the support at the 1.5883 level, which left a bullish gap to open this week. If the pair manages to break that level, it is expected to fall to the level of 1.5746. On the other hand, it is very likely that GBPUSD starts to form a lower high pattern above this level and if it succeeds, it is expected to rise to the level of 1.6046. GBPUSD still remains in a solid bullish trend, which is expected to last for several weeks. The MACD indicator is in positive territory.

H4 chart: It seems that the GBPUSD pair has found resistance near the bullish trend line, at the level of 1.5975. Now, it is very likely that the GBPUSD continue falling until the support at the level of 1.5811 to fill the gap. The bearish trend could be featured in this pair for a few days, while defining the GBPUSD general trend in this chart. For now, the GBPUSD remains above the 200-day moving average and the MACD indicator is in extreme overbought zone and entering negative territory.

H1 chart: GBPUSD found resistance at the 1.5966 level and now this pair is falling to completely fill the gap this week, about the level of support at 1.5871. If the pair manages to break that level, it is expected to fall to the level of 1.5810, but it is very likely that the GBPUSD conducts a bullish rebound at the support level. The MACD indicator is entering extreme oversold zone and continues to stay into negative territory, so that the bullish rebound could take place in the coming days.

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 1.5966, take profit is at 1.6031, and stop loss is at 1.5900.