FX.co ★ Daily analysis of GBP/USD for January 16, 2014

Daily chart:В The GBP/USD manages to fall to the support level of 1.6326 and this can mean a bearish consolidation in the short term, as this pair comes falling from the level of about 1.6490. If the pair manages to break the level of 1.6326, it's expected to fall to the level of 1.6235. On the other hand, it's expected to rise again to the level of 1.6447 if the pair takes a bullish rebound to current levels. The MACD indicator is still in negative territory.

H4 chart: This pair fell again to the 200 SMA, where currently this is making a bullish rebound. However, this could be forming a bearish pattern to continue falling below the level of 1.6336. If this pair manages to break the resistance level of 1.6441, it's expected to rise to the level of 1.6464. The MACD indicator is still in negative territory.

H1 chart: The GBP/USD is finding support on the checkpoint near the level of 1.6355. If this pair manages to break the resistance level of 1.6375, it's expected to rise to the level of 1.6419, where the 200-day moving average is located. On the other hand, if the pair manages to break the support level at 1.6331, it's expected to fall to the level of 1.6291, which would be a clear bearish consolidation. The MACD indicator is still 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 1.6375, take profit is at 1.6419, and stop loss is at 1.6329.В