FX.co ★ GBPUSD: daily analysis for November 05, 2013

Daily chart: GBPUSD made a bullish rebound at the support level of 1.5883. It is very likely that this movement is the formation of a higher low pattern to continue falling in the coming days. However, the possibility exists that this pair will rise to the resistance level of 1.6046. On the other hand, if the pair manages to break the support at the level of 1.5883, it is expected to drop to the level of 1.5746. The MACD indicator remains in negative territory.

H4 chart: This pair has made a bullish rebound near the 1.5895 level. Now, this pair is trying to break the resistance level at 1.6004, which houses the 200-day moving average. If the pair manages to break that level, it is expected to rise to the level of 1.6090, where a bullish trend line is nearby. On the other hand, if the pair manages to break the support at the level of 1.5895, it is expected to drop to the level of 1.5811. The MACD indicator remains in positive territory.

H1 chart: This pair is trying to break the resistance at 1.5980. If successful, it is expected to rise to the level of 1.6031. On the other hand, GBPUSD is likely to conduct a bearish rebound pair at current levels and fall to the support at the 1.5925 level. If the pair manages to break this support level, it would be expected to fall to the level of 1.5871. The MACD indicator is entering the extremely overbought zone and it is in neutral territory.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.5925, take profit is at 1.5871, and stop loss is at 1.5977.