FX.co ★ Daily analysis of GBP/USD for June 04, 2014

Daily chart: The GBP/USD stays below the resistance level of 1.6766, as this pair has made a pullback at this level. If GBP/USD manages to make a breakout at that level, it would be expected to rise to the resistance level of 1.6851. However, it is expected to continue corrective movements. The MACD indicator is in negative territory.

H4 chart: This pair has formed a double top pattern on the resistance level of 1.6762, so it is likely that the GBP/USD try a breakout in the support level of 1.6731. If successful, it is expected to fall to the support level of 1.6683. However, if the GBP/USD manages to make a breakout on the resistance level of 1.6785, it's expected to rise to the level of 1.6822. The MACD indicator is in the overbought zone.

H1 chart: The GBP/USD stays below the resistance level of 1.6750, because this pair found resistance at the 200 SMA. However, if the pair manages to consolidate above this level, it would be expected to go up to resistance level of 1.6800. On the other hand, if the GBP/USD manages to make a breakout at the support level of 1.6700, it's expected to fall to the level of 1.6629. The MACD indicator is in negative 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 1.6700, take profit is at 1.6629, and stop loss is at 1.6770.