FX.co ★ Daily analysis of GBP/USD for October 03, 2014

The GBP/USD pair continues to weaken below the 200-day moving average in the daily chart, so this pair is trying to make a breakout at the support level of 1.6146. The next target road bearish for this pair is the 1.6046 level. Although we must remember that the support level of 1.6046 is very strong, which may appear in GBP/USD. For now, this pair is solid in the bearish bias. In MACD indicator is entering the overbought area.

Daily chart's resistance levels: 1.6235 - 1.6326

Daily chart's support levels: 1.6146 - 1.6046

On the H1 chart we can see that this pair had a strong fall below the resistance level of 1.6170, and now, the GBP/USD is finding strong support at the 1.6117 level. This pair would make a breakout at that level, though the GBP/USD pair may rise again to the resistance level of 1.6117. However, it is advisable to wait for the formation of a lower low pattern to continue placing sell orders.

H1 chart's resistance levels: 1.6170 – 1.6216

H1 chart's support levels: 1.6117 – 1.6075

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the resistance level is at 1.6117, take profit is at 1.6075, and stop loss is at 1.6223.