FX.co ★ Daily analysis of GBP/USD for January 21, 2014

Daily chart: The GBP/USD continues forming a lower high pattern below the level of 1.6447 and it is likely that during today's session, the pair have important movements since yesterday's session was slow due to the holiday in the United States. Our bullish outlook is still alive in this pair. However, if this pair makes a bearish rebound at current levels, would be expected to fall to the support level of 1.6326. The MACD indicator is still in negative territory.

H4 chart: This pair is trying to break the resistance level of 1.6441, but it seems that this level is quite strong and has been a major obstacle to the bullish trend of this pair. GBP/USD is likely to fall to the 200-day moving average near the level of 1.6336. If the pair manages to break that level, it would be expected to fall to the level of 1.6292. The MACD indicator is entering extremely overbought zone and in neutral territory.

H1 chart: The GBP/USD has found strong support on the level of 1.6419, where it has formed a point of control, which could help this pair continue to rise this week and consolidating above the 200 SMA. If this pair manages to break the resistance level of 1.6464, it's expected to rise to the level of 1.6507. The MACD indicator is still in negative 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 1.6464, take profit is at 1.6507, and stop loss is at 1.6420.