FX.co ★ GBPUSD: Daily analysis for October 03, 2013

Daily chart: This pair is rising and strengthening its current bullish trend. Now, GBPUSD is trying to break the resistance level at 1.6235, and, if it succeeds, it is expected to rise to the level of 1.6326. We must be pending before the breakout of the resistance level, because it could strengthen even more the current bullish trend in this pair. However, GBPUSD may conduct a bearish rebound and fall back to the support at the 1.6146 level. The MACD indicator is in extremely overbought zone and entering neutral territory.

H4 chart: GBPUSD is facing resistance at the 1.6247 level. If the pair manages to break that level, it is expected to rise to the level of 1.6440 in the medium term. On the other hand, if the pair manages to break the support at the level of 1.6164, it is expected to drop to the level of 1.6050. The current levels of this pair are very important for the continuation of the bullish trend in this chart. The MACD indicator remains in negative territory.

H1 chart: This pair is forming a lower high pattern above the support at the level of 1.6216. If this pair manages to break the resistance level of 1.6252, it is expected to rise to the level of 1.6291. On the other hand, if the pair manages to break the support at the level of 1.6216, it is expected to drop to the level of 1.6170, although this is unlikely, because GBPUSD remains very strong in the current bullish trend. The MACD indicator is in extremely overbought zone and entering 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 1.6252, take profit is at 1.6291, and stop loss is at 1.6216.