FX.co ★ Daily analysis of GBP/USD for March 17, 2014

Daily chart: This pair keeps moving below the resistance level of 1.6663. However, the bullish trend is still alive in the GBP/USD, because this pair is forming a bullish pattern on the daily chart. Last week, the pair formed a fractal near the 1.6540 level. If GBP/USD manages to make a breakout at the level of 1.6663, it's expected to rise to the level of 1.6766. The MACD indicator is in negative territory.

H4 chart: GBP/USD has made a bullish rebound above the 200-day moving average, so this pair is trying to make a breakout at the resistance level of 1.6644. If successful, it is expected to rise to the level of 1.6667. On the other hand, it is expected to fall to the support level of 1.6592 if the pair takes a bearish rebound to current levels. The MACD indicator remains in positive territory.

H1 chart: This pair is consolidating above the support level of 1.6629. If the pair manages to consolidate above the 200-day moving average, it's expected to rise to the resistance level of 1.6700. Furthermore, the GBP/USD may form a trend change pattern. If GBP/USD manages to consolidate below the 1.6629 level, it's expected to fall to the level of 1.6578. 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 1.6629, take profit is at 1.6578, and stop loss is at 1.6682.