FX.co ★ GBPUSD: daily analysis for December 10, 2013

Daily chart: During yesterday's session, the pair had a significant bullish momentum above the support level at 1.6326, and now this pair is trying to make a breakout at the level of 1.6447. If the pair manages to break that level, it is expected to rise to the level of 1.6540. On the other hand, it is very likely that this pair start to make corrective movements after that breakout. The MACD indicator is still in positive territory.

H4 chart: GBPUSD is breaking the resistance level of 1.6441, after it has been consolidated over the bullish trend line. It is very likely that this pair will rise to the level of 1.6575. However, we must be careful, because this pair is entering overbought zone, so it is very likely that some corrective movements will come in the next few hours. The MACD indicator is still in positive territory.

H1 chart: This pair managed to break the resistance level at 1.6419 and now GBPUSD is consolidating above this level with the formation of a bullish pattern (lower high pattern). If this pair manages to break the resistance level of 1.6464, it is expected to rise to the level of 1.6507. Moreover, if this pair does break the support at the level of 1.6419, it is expected to fall to the level of 1.6375. The MACD indicator is entering extremely overbought zone.

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 1.6464, take profit is at 1.6507, and stop loss is at 1.6419.