FX.co ★ Daily analysis of GBP/USD for February 13, 2014

Daily chart: The GBP/USD had a bullish momentum that has led it to consolidate above the support level of 1.6540. Now, it is very likely that this pair will begin to form a lower high pattern to continue rising as the bullish trend has been quite lateralized this week. For now, we recommend caution when placing buy orders as the GBP/USD is overbought. The MACD indicator is still in positive territory.

H4 chart: This pair is trying to break the resistance level of 1.6592. If successful, it is expected to rise to the level of 1.6644. For now, it is very likely that the GBP/USD will start making corrective movements in favor of the current trend. Note that this pair remains above the 200-day moving average and has not yet formed a fractal in the nearest resistance levels. The MACD indicator is in positive territory.

H1 chart: The GBP/USD has consolidated above the support level of 1.6578, which is located nearest the point of control. If the pair manages to break the resistance level of 1.6629, it's expected to rise to the level of 1.6700. Moreover, if this pair does break the support level of 1.6578, it is expected to fall to the level of 1.6544. The MACD indicator is in the overbought zone.

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 1.6629, take profit is at 1.6700, and stop loss is at 1.6559.