FX.co ★ GBPUSD: daily analysis for November 25, 2013

Daily chart: GBPUSD had a week dominated by the bulls, which strengthened the bullish trend in this pair. If this pair manages to break the resistance level at 1.6235, it is expected to rise to the level of 1.6326. However, it is very likely that this pair will make a bearish rebound at that resistance level and fall to the support level of 1.6146, because this pair is too overbought. The MACD indicator is still in positive territory.

H4 chart: This pair is forming a lower high pattern below the resistance level of 1.6247. If the pair manages to break that level, it is expected to rise to the level of 1.6262. However, GBPUSD is strong enough to resistance levels in this chart, so we must be careful when placing buy orders within those levels. The MACD indicator is in positive territory.

H1 chart: GBPUSD is breaking the resistance level at 1.6216, and it is very likely that this pair is consolidating above that level. If successful, it is expected to rise to the level of 1.6252. However, if this pair makes a bearish rebound at the current levels, it would be expected to fall to the level of 1.6170. The MACD indicator is entering neutral territory and in extremely oversold zone, so we recommend caution.

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 1.6252, take profit is at 1.6291, and stop loss is at 1.6213.