FX.co ★ Daily analysis of GBP/USD for May 14, 2014

Daily chart: The GBP/USD has made a breakout at the support level of 1.6851, so this pair could fall to the support level of 1.6766. However, caution should be exercised when placing sell orders, as the GBP/USD could perform a bullish rebound at current levels and go up to the resistance level of 1.7000. The MACD indicator is in negative territory.

H4 chart: The GBP/USD has found support in the bullish trend line nearby to the support level of 1.6822. For now, this pair remains above the 200-day moving average, though the GBP/USD is approaching this level. However, if the pair manages to make a breakout at the l 1.6822 level, it's expected to fall to the level of 1.6785. The MACD indicator is in negative territory.

H1 chart: This pair has consolidated below the 200 SMA and the resistance level of 1.6850. If GBP/USD manages to make a breakout at the support level of 1.6800, it's expected to fall to the level of 1.6750, which would strengthen the current bearish outlook. The MACD indicator is in positive 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 1.6800, take profit is at 1.6750, and stop loss is at 1.6850.