FX.co ★ Daily analysis of GBP/USD for March 28, 2014

Daily chart: The GBP/USD continues to strengthen above the support level of 1.6540 and now this pair is trying to continue its bullish bias toward the resistance level of 1.6663. However, it is very likely that this pair will begin to form a bullish pattern, as the GBP/USD has made consecutive bullish movements during recent days. The MACD indicator is oversold.

H4 chart: This pair is trying to consolidate above the 200-day moving average, after the GBP/USD has successfully managed to form one lower high pattern. If the pair manages to make a breakout on the resistance level of 1.6644, it's expected to rise to the level of 1.6667. For now, the GBP/USD remains very bullish. The MACD indicator is entering overbought area.

H1 chart: The GBP/USD found strong resistance at the level of 1.6629. However, this pair is trying to make a breakout at that level. If successful, it is expected to rise to the resistance level of 1.6700. On the other hand, if the pair manages to make a breakout in the support level of 1.6578, it's expected to fall to the level of 1.6544. The MACD indicator is in negative territory.

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 1.6558.