FX.co ★ GBPUSD: Daily analysis for August 13, 2013

Daily chart: GBPUSD bounced off the resistance level at 1.5506 and now this pair is falling below the 200-day moving average and is expected to fall to support at 1.5407. If the pair manages to break that level, it is expected to fall to the level of 1.5266. However, the bullish trend is still very strong in this pair, because of the momentum that it has had in recent days. If GBPUSD manages to break the resistance at 1.5506, it is expected to rise to the level of 1.5642. The MACD indicator remains in positive territory, but this is already beginning to show signs of weakness in the current trend bullish.

H4 chart: This pair could not consolidate above resistance level at 1.5512, so now this is trying to touch the support level at 1.5436. If the pair manages to break the support at the 1.5411 level is expected to fall to the level of 1.5341, very close to the 200-day moving average. Now, it is very likely that GBPUSD will go up again to the resistance level at 1.5512 and if the pair manages to break that level, it is expected to rise to the level of 1.5604. The MACD indicator remains in negative territory and still gives no signs of extreme oversold.

H1 chart: Close to the support at 1.5460, it is forming a Point Of Control and this may act as strong support for this pair. If GBPUSD manages to consolidate below the 1.5460 level, it's expected to fall to the level of 1.5406, which houses the 200-day moving average. However, it is likely that GBPUSD conducts a bullish rebound in this POC and climbs back up to resistance level of 1.5501 and if it breaks, it is expected to rise to the level of 1.5534. The MACD indicator remains in positive territory, although the MA is in neutral territory.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.5501, take profit is at 1.5534, and stop loss is at 1.5468.