FX.co ★ Daily analysis of GBP/USD for March 31, 2014

Daily chart: The GBP/USD is facing resistance at the level of 1.6663, so it is very likely that during this week this pair will perform corrective movements to form a lower high pattern below that level. If the pair manages to make a breakout at the resistance level, it's expected to rise to the level of 1.6766. The MACD indicator is in positive territory.

H4 chart: The GBP/USD stays below the resistance level of 1.6644. The next target for this pair is the 1.6667 level. However, it is very likely that this pair will fall to the support level of 1.6592. If the pair manages to consolidate above the 1.6667 level, it's expected to rise to the level of 1.6735. The MACD indicator is in the overbought zone.

H1 chart: This pair is consolidating above the point of control at the level of 1.6629. It is very likely that the GBP/USD will attempt to climb to the resistance level of 1.6700. If the pair manages to make a breakout at that level, it would be expected to rise to the level of 1.6750. On the other hand, if the GBP/USD manages to make a breakout at 1.6629 level, it's expected to fall to the level of 1.6578, where the 200-day moving average is located. The MACD indicator is in neutral 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 1.6700, take profit is at 1.6750, and stop loss is at 1.6650.