FX.co ★ GBPUSD: daily analysis for November 14, 2013

Daily chart: The GBPUSD made a bullish rebound on the support at the 1.5883 level and now this pair is trying to break the resistance level at 1.6046. Near the level of 1.5883, the pair formed a fractal, which could give strength to the current bullish trend of this pair. If this pair manages to break the resistance level of 1.6046, it is expected to rise to the level of 1.6146. The MACD indicator is entering neutral territory.

H4 chart: As in the daily chart, the pair made a bullish rebound below the 200-day moving average and now, GBPUSD is consolidating above the 200-day moving average and the bearish trend line, near the level of 1.6040. It is very likely that this pair rises to the resistance level of 1.6117. However, if this pair breaks the support at the level of 1.6004, it is expected to drop to the level of 1.5903. The MACD indicator remains in positive territory.

H1 chart: This pair had a fairly bullish session yesterday and now, the GBPUSD is forming a bullish pattern above support at the 1.6031 level. If this pair manages to break the resistance level of 1.6075, it is expected to rise to the level of 1.6117. On the other hand, if the pair manages to break the support at the level of 1.6031, it is expected to drop to the level of 1.5980. The MACD indicator is entering extremely overbought area.

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 1.6075, take profit is at 1.6117, and stop loss is at 1.6031.