FX.co ★ Daily analysis of GBP/USD for January 09, 2014

Daily chart: This pair is consolidating above support level of 1.6447. It is very likely that this pair will rise to the resistance level of 1.6540, but we must remember that the GBP/USD is still forming a higher low pattern. If the pair manages to break the support level at 1.6447, it is expected to fall to the level of 1.6326. On the other hand, if the pair manages to break the resistance level of 1.6540, it is expected to rise to the level of 1.6663. The MACD indicator is still in negative territory.

H4 chart: GBPUSD is trying to break the resistance level of 1.6483. If successful, it is expected to rise to the level of 1.6535. Moreover, if this pair does break the support at the level of 1.6464, it is expected to fall to extend to the level of 1.6441. For now, our outlook remains bullish. The MACD indicator is in positive territory and GBP/USD remains above the 200 SMA.

H1 chart: GBPUSD has consolidated above the point of control and above the 200 SMA. Now this pair is trying to break the resistance level of 1.6464. If successful, it is expected to rise to the level of 1.6507. On the other hand, it is expected to fall to the level of 1.6419 if the pair takes a bearish rebound to current levels. The MACD indicator is in neutral 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 1.6419, take profit is at 1.6464, and stop loss is at 1.6375.