FX.co ★ Daily analysis of GBP/USD for October 10, 2014

On the H4 chart, GBP/USD has formed a fractal at the resistance level of 1.6240, where the pair performed a pullback as a corrective move. The GBP/USD pair might be forming a bullish pattern to attempt a breakout at that level, although the bearish trend line at the 1.6160 level is strong resistance for this pair. Probably, during today's session, GBP/USD could extend its fall to the support level of 1.6051. The MACD indicator is entering overbought area.

H4chart's resistance levels: 1.6247 – 1.6435

H4 chart's support levels: 1.6051 - 1.6004

The GBP/USD pair found resistance at 1.6216 level. So far, this pair has been trying to form a bearish pattern below the 200 SMA in the hourly chart. If the GBP/USD succeeds in extending its drop below the support level of 1.6117, it would be expected to fall to 1.6075 level in the short term.

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 buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.6170, take profit is at 1.6216, and stop loss is at 1.6124.