FX.co ★ GBPUSD: Daily analysis for September 04, 2013

Daily chart: GBPUSD has made very slight movements, but it continues to consolidate its bullish trend at the moment. However, remember that this may be just a corrective move to form a higher low pattern, which after that will continue falling. However, this could be a bullish rebound, and eventually, this pair could rise to the resistance level at 1.5642. If GBPUSD manages to break the support level at 1.5506 and the bullish trendline, it is expected to fall to the level of 1.5407. The MACD indicator remains in negative territory.

H4 chart: This pair remains above the support at the 1.5512 level. The bullish outlook is still alive in this pair, because it stays above the 200-day moving average, and although GBPUSD failed to break the resistance level at 1.5604, it can eventually rise to the resistance level at 1.5698, if the USDX can break the 1.5604 level. The MACD indicator is entering neutral territory and at extreme overbought levels.

H1 chart: GBPUSD still remains within the Point of Control (POC), but it is still above the 200-day moving average, which could prompt a strong bullish movement this week. If GBPUSD manages to break the resistance at the 1.5590 level, it is expected to rise to the level of 1.5632. On the other hand, if the pair manages to break the support at the level of 1.5534, it is expected to drop to the level of 1.5501. The MACD indicator is in neutral territory, reflecting the uncertainty in this pair.

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 1.5590, take profit is at 1.5632, and stop loss is at 1.5547.