FX.co ★ GBPUSD: Daily analysis for August 09, 2013

Daily chart: GBPUSD continues to strengthen its bullish trend in this chart, breaking the resistance level of 1.5506. This pair is trying to consolidate above the 200-day moving average and it is very possible that it will rise to the resistance level of 1.5642. By now, we are expecting that GBPUSD will start making corrective movements due to the laterality of its bullish trend today. Furthermore, if the support of GBPUSD manages to break at the level of 1.5506, it is expected to drop to the level of 1.5407. The MACD indicator remains in positive territory and this could strengthen our bullish outlook for this pair.

H4 chart: This pair is forming a lower high pattern, above the support at the 1.5512 level. It is very possible that this pair rise to the resistance level 1.5604 and if it manages to break that level, it is expected to rise to the level of 1.5752 in the medium term. On the other hand, if the GBPUSD achieved in breaking the support level at 1.5512, it is expected to drop to the level of 1.5436. For now, this pair remains above the 200 day moving average, which would strengthen our bullish outlook for this pair. However, the MACD indicator is showing extreme overbought, so we must be cautious.

H1 chart: GBPUSD is holding above support level of 1.5534. The chances are high that GBPUSD will rise to the resistance level of 1.5590. On the other hand, if the pair manages to break the support level of 1.5534, it is expected to drop to the level of 1.5501. GBPUSD continues forming a lower high pattern and it is possible that this pair will continue to strengthen up, so we must be pending before any formation of a bullish pattern. The MACD indicator remains in negative territory.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks the bullish candlestick; the resistance level is at 1.5590, take profit is at 1.5632, and stop loss is at 1.5549.