FX.co ★ Daily analysis of GBP/USD for February 06, 2014

Daily chart: This pair continues to find support on the bullish trend line near the support level of 1.6235. If the pair manages to break this support, it is expected to fall to the level of 1.6146. Furthermore, the GBP/USD is forming a bearish pattern, which could favor the current bearish bias. If this pair manages to break the resistance level of 1.6326, it's expected to rise to the level of 1.6447. The MACD indicator is in negative territory.

H4 chart: The bearish bias is even more evident in this chart, since the GBP/USD stays below the 200 SMA and the resistance level of 1.6336. If the pair manages to break the support level of 1.6247, it's expected to fall to the level of 1.6218, which would be a strong bearish consolidation. The MACD indicator remains in positive territory.

H1 chart: The GBP/USD has not been able to get out of the range between the 1.6331 and 1.6252 levels. These levels are very strong, as the point of control is in the middle of these levels, so this area is considered "high volatility". However, if the pair manages to break the support level of 1.6252, it's expected to fall to the level of 1.6216. The MACD indicator is in positive 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 1.6291, take profit is at 1.6252, and stop loss is at 1.6329.