FX.co ★ Daily analysis of GBP/USD for February 07, 2014

Daily chart: The GBP/USD is keeping moving slowly below the resistance level of 1.6326. For now, this pair continues to respect the way of bullish trend line, as the GBP/USD had formed a fractal days ago at that trend line, so it is very likely that this pair will continue to find strong support at the trend line. The MACD indicator remains in negative territory, so our bearish outlook is still alive.

H4 chart: The resistance level at 1.6336 continues to strengthen the bearish bias on the GBPUSD, as this pair were unable to consolidate above this level. However, the GBP/USD continues to find support on the bearish trend line near the level of 1.6250. However, if this pair manages to break the resistance level of 1.6336, it's expected to rise to the level of 1.6435 . The MACD indicator is still in positive territory.

H1 chart: This pair remains within the point of control, which is formed above the support level of 1.6291 . The GBP/USD attempted to consolidate back below that level, but could not. Now this pair is trying to break the resistance level of 1.6338. If successful, it is expected to rise to the level of 1.6375. The MACD indicator is entering 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 1.6291, take profit is at 1.6252, and stop loss is at 1.6329.