FX.co ★ GBPUSD: Daily analysis for August 05, 2013

Daily chart: GBPUSD starts a week over the resistance level at 1.5266. On Friday, the pair made a bullish rebound above the support at the 1.5159 level. Now, this pair is trying to form a lower high pattern, to continue up to the next resistance level of 1.5407. On the other hand, if this pair makes a bearish rebound at current levels, it would be expected to fall to support at the 1.5159 level. The MACD indicator is in neutral territory.

H4 chart: In this chart, the GBPUSD pair is forming a lower high pattern above the support at the 1.5260 level and the 200-day moving average. It is very likely that this pair climbs to achieve the resistance level at 1.5341. On the other hand, if the pair manages to break the support at the level of 1.5260, it is expected to drop to the level of 1.5195. We must be very attentive to these current levels, because there are a lot of volatility. The MACD indicator remains in positive territory and still shows no signs of extreme overbought.

H1 chart: In the H4 chart, GBPUSD is forming a lower high pattern above the support at the level of 1.5249. If GBPUSD manages to break the resistance at the 1.5295 level, it is expected to rise to the level of 1.5333. Furthermore, if GBPUSD manages to break the support level of 1.5249, it is expected to drop to the level of 1.5198. This pair is above the 200-day moving average and the MACD indicator is in extreme overbought territory and entering negative, so we must be cautious with this pair for today's session.

Fundamental outlook: For today's session, the Services PMI (Previous: 56.9 / Forecast: 57.4) at 08:30 GMT in the United Kingdom will be published.

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 1.5295, take profit is at 1.5333, and stop loss is at 1.5258.