FX.co ★ GBP/USD: Daily analysis for September 23, 2013

Daily chart: The GBPUSD pair continues falling below the resistance at the 1.6046 level and this could not find a solid support. This is likely to last until fall in the support level at 1.5883. If successful, it is likely that the GBPUSD pair starts forming a higher low pattern, because this fall has been very lateralized. On the other hand, if the pair manages to break the resistance at the 1.6046 level, it would be expected to rise to the level of 1.6146. The MACD indicator is in extreme overbought zone and gradually entering neutral territory, so we must be cautious.

H4 chart: This pair is still holding below the bullish trend line near 1.6045 level. GBPUSD is likely to continue to fall to the support level at 1.5811, because this broke the bullish trend line. Furthermore, if the GBPUSD pair is able to consolidate above the bullish trend line, it would be expected to rise again until the resistance level 1.6160. The MACD indicator remains in negative territory and has not yet entered into extreme oversold zone.

H1 chart: Last Friday, the GBPUSD pair broke the support at the 1.6031 level and now, this is forming a higher low pattern to continue falling to support at the 1.5966 level. If the pair manages to break that level, it is expected to fall to the level of 1.5871, below the 200-day moving average. On the other hand, if the pair manages to break the resistance at the 1.6031 level, it would be expected to rise to the level of 1.6075. The MACD indicator is in neutral territory, reflecting the lack of clarity in GBPUSD general trend.

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 1.6031, take profit is at 1.6075, and stop loss is at 1.5989.