FX.co ★ Daily analysis of GBP/USD for April 16, 2014

Daily chart: During yesterday's session, the GBP/USD fell to the support level of 1.6663 where the pair made a bullish rebound to try and consolidate back above that level. If the pair manages to make a breakout at the resistance level of 1.6766, it's expected to rise to the level of 1.6851. The MACD indicator is in positive territory.

H4 chart: This pair continues to find support on the bearish trend line there near the 1.6700 level. For now, the trend remains bearish in this chart, but the GBP/USD still remains strong in the bullish bias above the 200 SMA. If the pair manages to make a breakout at the 1.6785 level, it would be expected to rise to the level of 1.6822. The MACD indicator is in neutral territory.

H1 chart: Again, the GBP/USD has made a bullish rebound above the 200 SMA and managed to consolidate below the support level of 1.6700. However, the bias remains bullish on this pair and you have to be aware of a breakout at the resistance level of 1.6750. The MACD indicator is in positive 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 1.6750, take profit is at 1.6800, and stop loss is at 1.6700.