FX.co ★ GBPUSD: Daily analysis for October 15, 2013

Daily chart: GBPUSD has moved slowly in the last hours. This pair is trying to respect the bullish trendline. But any breakout at that trendline could accelerate the fall of this pair to the support at the 1.5883 level. 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, which could indicate a new impulse bullish trend. The MACD indicator remains in negative territory.

H4 chart: This pair is trying to break the resistance level at 1.6004. If successful, it is expected to rise to the level of 1.6055, where the bullish trendline is placed. However, if the pair manages to break the bullish trendline near the 1.5965 level, it is expected to fall to the level of 1.5910, where the 200-day moving average is placed. The MACD indicator remains in positive territory and our bullish outlook remains alive in GBPUSD.

H1 chart: During yesterday's session, the pair is consolidating above support at the 1.5980 level. However, this pair could not overcome the 200-day moving average and fell to the level of support at 1.5980, where the pair quickly made a bullish rebound. Now, it is very likely that this pair rises to the resistance level of 1.6031. On the other hand, if the pair manages to break the support at the level of 1.5980, it is expected to drop to the level of 1.5925.

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 1.5980, take profit is at 1.5925, and stop loss is at 1.6035.