FX.co ★ Daily analysis of GBP/USD for April 23, 2014

Daily chart: This pair has made a bullish movement above the support level of 1.6766, so far, the GBP/USD is approaching the resistance level of 1.6851. If the pair manages to make a breakout at that level, it would be expected to rise to the level of 1.7000. However, caution should be exercised when placing buy orders below that resistance level. The MACD indicator is in positive territory.

H4 chart: The GBP/USD is trying to do a consolidation above the resistance level of 1.6822. Now, we should wait for this pair to begin to form a bullish pattern, as the GBP/USD could perform a bearish rebound at current levels. The MACD indicator is entering neutral territory.

H1 chart: This pair has consolidated above the support level of 1.6800 and the point of control, so it is very likely that the GBP/USD will rise to the resistance level of 1.6850. If the pair manages to make a breakout at that level, it would be expected to rise to the level of 1.6900. On the other hand, if the pair manages to make a breakout at the 1.6800 level, it's expected to fall to the level of 1.6750. The MACD indicator is in negative territory.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.6850, take profit is at 1.6900, and stop loss is at 1.6800.