FX.co ★ Daily analysis of GBP/USD for November 06, 2014

At the H4 chart, the GBP/USD has made a rebound on the support level of 1.5874 because qthe pair fell steeply from the level of 1.6004. Now, the GBP/USD is trying to consolidate above the support level of 1.5951, while this pair is still holding strong in the current bearish trend. GBP/USD still remains below the 200 SMA.

H4chart's resistance levels: 1.6004/1.6051

H4chart's support levels: 1.5951/1.5874

The GBP/USD is trying to make a pullback on the resistance level of 1.5980, which is very likely to fall to the support level of 1.5925 on the H1 chart. If GBP/USD manages to make a breakout at the level of 1.5925, the next target would be the support level 1.5871. The MACD indicator is in the overbought zone.

H1 chart's resistance levels: 1.5980 / 1.6031

H1 chart's support levels: 1.5925 / 1.5871

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 1.5925, take profit is at 1.5871, and stop loss is at 1.5980.