FX.co ★ GBPUSD: Daily analysis for September 18, 2013

Daily chart: GBPUSD is holding above the support at the 1.5883 level, forming a lower high pattern. It is very likely that during the rest of the week, this pair will perform movements in a low range, due to the phase uncertainty has entered the last days, where its intraday trend is not clear. On the other hand, near the 1.5960 level this pair has formed a fractal up, which could serve as strong resistance for this pair. The MACD indicator remains in positive territory.

H4 chart: GBPUSD has not yet touched the 1.5873 level, in order to completely fill the gap left when opening the session on Monday. However, expect this pair to drop to this level and there, we could see the formation of a pattern to put orders. It is very likely that GBPUSD to continue forming the lower high pattern, to continue rising in the next few days, at least, to the level of 1.5990. On the other hand, GBPUSD could fall to the support at the 1.5811 level. MACD indicator remains in negative territory.

H1 chart: This pair remains above the 200-day moving average, which still keeps alive our bullish outlook on GBPUSD. However, if the pair manages to break the support at the 1.5871 level, it is expected to fall to the level of 1.5810, and then find touching the 200-day moving average. On the other hand, it is possible that GBPUSD can recover and rises to the resistance level of 1.5966. For now, we recommend caution in doing intraday trading. The MACD indicator is in neutral territory.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.5871, take profit is at 1.5810, and stop loss is at 1.5933.