FX.co ★ Daily analysis of GBP/USD for November 07, 2014

The GBP/USD had a bearish session yesterday because the pair made a breakout at the support level of 1.5883. The next goal on the bearish road would be the 1.5746 level. However, the GBP/USD may enter a consolidation phase during today's session. It should also be noted that the GBP/USD still remains very weak below the SMA 200. The MACD indicator is moving into negative territory.

Dailychart's resistance levels: 1.5883/1.6046

Dailychart's support levels: 1.5746/1.5642

On the H1 chart. the GBP/USD is forming a bearish pattern below the resistance level of 1.5871, assuming then that this pair is touching new historical low levels. If GBP/USD manages to overcome the 1.5810 level, it would be expected to fall to the level of 1.5739. For now, we must be cautious in the short term for the GBP/USD, because this pair is oversold.

H1 chart's resistance levels: 1.5871 / 1.5925

H1 chart's support levels: 1.5810 / 1.5739

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 1.5810, take profit is at 1.5739, and stop loss is at 1.5881.