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

On the daily chart, the GBP/USD continues to find strong bearish pressure at the level of 1.6146, because this pair has formed several fractals in that area. Now, the GBP/USD is consolidating below the level of 1.6046 and the next target in the medium term, it would be the support level of 1.5883. It should be noted that this level is very strong and has slowed further declines in the GBP/USD. The MACD indicator is entering overbought zone.

Dailychart's resistance levels: 1.6046/1.6146

Daily chart's support levels: 1.5883/1.5746

The GBP/USD has made a rebound on the level of 1.5950, an area that has caused this pair performs range movements in the H1 chart. However, it is likely that the GBP/USD make a bullish retracement to the resistance level of 1.6031. But the pair still has plans to make a breakout of the support level 1.5980 and then fall to the level of 1.5925. The MACD indicator remains in positive territory, favoring the completion of a bullish retracement in this chart.

H1 chart's resistance levels: 1.6031 / 1.6075

H1 chart's support levels: 1.5980 / 1.5925

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 1.5980, take profit is at 1.5925, and stop loss is at 1.6035.