FX.co ★ Daily analysis of GBP/USD for November 20, 2014

On the H4 chart, the GBP/USD pair had a bullish momentum above the trend line at the 1.5615 level, even if this pair is currently facing resistance at the level of 1.5698. If the GBP/USD pair makes a bullish consolidation over that area, it is expected to rise to the level of 1.5811, which would be part of a corrective move in favor of the bearish trend. SMA 200 is maintained at the level of 1.5951.

H4chart's resistance levels: 1.5698 / 1.5811

H4chart's support levels: 1.5610 / 1.5512

On the H1 chart, GBP/USD is forming a bullish pattern above the support level of 1.5632. If the pair manages to make a breakout at the resistance level of 1.5686, the next target would be the level of 1.5739, where the 200-day moving average is located on this chart. On the other hand, if this pair makes a bearish consolidation below the 1.5632 level, the next target would be the 1.5590 level. The MACD indicator is in the overbought zone.

H1 chart's resistance levels: 1.5686 / 1.5739

H1 chart's support levels: 1.5632 / 1.5590

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 1.5632, take profit is at 1.5590, and stop loss is at 1.5672.