FX.co ★ Daily analysis of GBP/USD for May 01, 2014

Daily chart: GBP/USD has made a breakout at the resistance level of 1.6851. Now, the next target for this pair is the resistance level of 1.7000. However, this pair is expected to form a bullish pattern to continue rising. The bullish bias in the GBP/USD is very strong, so it is advisable to keep putting buy orders. The MACD indicator is in positive territory.

H4 chart: This pair is trying to make a breakout at the resistance level of 1.6900, because the GBP/USD has consolidated above the support level of 1.6841. If successful, it is expected to rise to the level of 1.7000, at which one bullish trend line is. The MACD indicator is in positive territory.

H1 chart: The GBP/USD has consolidated above the point of control and the support level of 1.6850. If the pair manages to make a breakout at the resistance level of 1.6900, it's expected to rise to the level of 1.6950, which is very likely since the GBP/USD remains above the 200 SMA. 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 1.6900, take profit is at 1.6950, and stop loss is at 1.6850.