FX.co ★ Daily analysis of GBP/USD for September 05, 2014

Daily chart: The GBP/USD pair is trying to make a breakout at the support level of 1.6326, as this pair has consolidated below the resistance level of 1.6447. If it succeeds, it would be expected to drop the level of 1.6235, which would be a bearish consolidation below the 200 SMA and lead the GBP/USD to remain bearish in the medium term. The MACD indicator remains in the negative territory.

H4 chart: this pair is consolidating below the resistance level of 1.6435. So, the next target for the GBP/USD pair would be the support level of 1.6247. If the GBP / USD manages to make a breakout at that level, it would be expected to fall to the support level of 1.6004. For now, this pair remains below the 200 day moving average and the MACD indicator is still in the negative territory.

H1 chart: GBP/USD had a steep fall from the resistance level of 1.6464. Now, this pair is trying to form a bearish pattern below the resistance level of 1.6338. If the GBP / USD pair manages to make a breakout at that level, the next target would be the support level of 1.6252. The MACD indicator is entering the oversold zone.

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 1.6578, take profit is at 1.6544, and stop loss is at 1.6611.