FX.co ★ Daily analysis of GBP/USD for February 03, 2014

Daily chart: The GBP/USD continues to fall below the level of 1.6447, and starting this week, this pair is showing bearish patterns that indicate a clear weakness in this pair. If GBP/USD manages to consolidate below this level, it is likely that it will fall to the support level of 1.6326, which would be a change in the trend in the long term. The MACD indicator is in negative territory.

H4 chart: This pair is below the 200 SMA, although the odds are high that the GBP/USD make a bullish rebound above this level and up to the level of 1.6464. However, if the pair manages to consolidate below the level of 1.6435, it's expected to fall to the level of 1.6336. The MACD indicator is still in negative territory, so we must be careful when placing buy orders.

H1 chart: The intraday decline continues in this pair, as the GBP/USD stays below the 200-day moving average and below the point of control. If the pair manages to break the support level at 1.6419, it's expected to fall to the level of 1.6375. On the other hand, if the pair manages to break the resistance level of 1.6464, it's expected to rise to the level of 1.6507, where the 200-day moving average is located. The MACD indicator is in neutral territory.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.6419, take profit is at 1.6375, and stop loss is at 1.6463.