FX.co ★ Daily analysis of GBP/USD for October 22, 2014

On the H4 chart, the GBP/USD pair found resistance at the level of 1.6184, where the pair has formed a fractal. However, the GBP/USD pair could prolong the fall to the support level of 1.6051, because this pair is still maintained below 200 SMA. In addition, if the GBP/USD pair achieves consolidation above the level of 1.6247, the next target would be the level of 1.6276. The MACD indicator is entering the negative territory which is favoring the current bearish bias.

H4chart's resistance levels: 1.6226 / 1.6247

H4chart's support levels: 1.6051 / 1.6004

The GBP/USD pair has made a strong retracement from the resistance level of 1.6170 so far. This pair could fall to the support level of 1.6075 where the 200 SMA is located. However, we must stress that this pair could make one bullish consolidation in the coming hours, due to the dynamic support offered by the 200 SMA on the H1 chart.

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 1.6126.