FX.co ★ GBPUSD: daily analysis for November 06, 2013

Daily chart: The pair managed to consolidate above support at the 1.5883 level and now, GBPUSD is breaking the resistance level at 1.6046. If successful, it is expected to rise to resistance level at 1.6146. On the other hand, if this pair falls back below the level of 1.6046, it is expected to drop to the level of 1.5883. The MACD indicator is in negative territory, but is entering neutral territory, so we must be cautious.

H4 chart: GBPUSD is forming a lower high pattern below the bullish trend line near the 1.6095 level. If the pair manages to break that level, it is expected to rise to the resistance level at 1.6164. On the other hand, if this pair makes a bearish rebound at current levels, it would be expected to fall to support at the 1.6004 level, which houses the 200-day moving average. The MACD indicator remains in positive territory.

H1 chart: This pair is consolidating above the 200-day moving average and support at the 1.6075 level. It is very likely that this pair rises to the resistance level of 1.6117 and if this does break, it is expected to rise to the level of 1.6170. On the other hand, if the pair manages to break the support at the level of 1.6075, it is expected to drop to the level of 1.6031. The MACD indicator remains in positive 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 1.6117, take profit is at 1.6170, and stop loss is at 1.6062.