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

Daily chart: It seems that GBPUSD wants to make a bullish rebound at the bullish trendline near the 1.5975 level. It is very likely that this pair resistance rises to the level of 1.6046 due to bullish momentum. Moreover, if this pair does break the trendline, it would be expected to drop to the level of 1.5883. The MACD indicator remains in negative territory and is showing weakness in the current bearish trend, so we must be cautious.

H4 chart: Again this pair made a bullish rebound at the moving average of 200, after which the pair found resistance at the 1.6004 level. If the pair manages to break that level, it is expected to rise to the level of 1.6065. On the other hand, if the pair manages to consolidate below the 200 SMA, it would be expected to drop to the level of 1.5811. The MACD indicator remains in neutral territory and our bullish outlook still remains alive.

H1 chart: GBPUSD had a strong fall yesterday, because this pair found resistance near the 1.6031 level. Then, the pair made a bullish rebound near the 1.5925 level and the pair quickly rose to the resistance at 1.5980 level. If the pair manages to break that level, it is expected to rise to the level of 1.6031. On the other hand, if this pair makes a bearish rebound at current levels, it would be expected to fall to the level of 1.5925. The MACD indicator remains in positive 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 1.5925, take profit is at 1.5871, and stop loss is at 1.5980.