FX.co ★ Daily analysis of GBP/USD for March 18, 2014

Daily chart: The GBP/USD continues to make quite slow movements, so this pair has not defined a trend for the next few days in this chart. For now, this pair is forming a higher low pattern below the resistance level of 1.6663. If the pair manages to make a bearish rebound at current levels, it would be expected to fall to the level of 1.6540. The MACD indicator is in negative territory.

H4 chart: This pair remains above the 200-day moving average and below the resistance level of 1.6644. If the pair manages to consolidate above this level, would be expected to rise to the resistance level of 1.6667. However, the current bullish bias remains very weak, so it is advisable to wait for a breakout at the level of 1.6667. The MACD indicator is in positive territory.

H1 chart: The GBP/USD has made a bearish rebound in 200 SMA, after this pair has found resistance at that level. However, this pair remains above the support level of 1.6629. If the pair manages to make a breakout at that level, it would be expected to fall to the level of 1.6578. 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 1.6629, take profit is at 1.6578, and stop loss is at 1.6682.