FX.co ★ GBPUSD: Daily analysis for October 28, 2013

Daily chart: GBPUSD remains in the range between 1.6235 and 1.6146. Within this range, the pair is forming a bullish pattern. These current levels are very important in the development of the bullish trend of this pair, because a change in the trend is possible here. If the pair manages to break the support level of 1.6146, it is expected to fall to the bearish trend line near the 1.6046 level. The MACD indicator remains in positive territory, but it is slowly entering neutral territory.

H4 chart: This pair found strong support at the 1.6164 level, where one bullish trendline will be placed. If the pair manages to break that level, it is expected to fall to the level of 1.6120. On the other hand, it is very likely that this pair will conduct a bullish rebound at the current levels and go up to the resistance level of 1.6247. The MACD indicator is entering negative territory, so we should be careful when placing buy orders.

H1 chart: GBPUSD found strong resistance at the 1.6216 level. Now, this pair is forming a higher low pattern below the 1.6170 level. This pair is likely to fall to the level of 1.6145, because the 200-day moving average is situated there, and the drop could continue to the support level of 1.6117. On the other hand, if the pair manages to break the resistance at the 1.6170 level, it would be expected to rise to the level of 1.6216. The MACD indicator remains in negative territory.

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 1.6170, take profit is at 1.6216, and stop loss is at 1.6125.