FX.co ★ GBPUSD: Daily analysis for November 12, 2013

Daily chart: The GBPUSD pair continues falling below the resistance level at 1.6046 and the next target in the current bearish trend is the support at the level of 1.5883. However, this pair could begin to form a higher low pattern, to continue the fall. On the other hand, if the pair manages to break the resistance at the 1.6046 level, it would be expected to rise to the level of 1.6146. The MACD indicator remains in negative territory.

H4 chart: This pair is forming a higher low pattern below the 200-day moving average and resistance at the 1.6004 level. If the pair manages to consolidate below those levels, it would be expected to fall to support at the 1.5903 level, where the bullish trend line is set slightly. On the other hand, if the pair manages to break the resistance at the 1.6004 level, it would be expected to rise to the level of 1.6164. The MACD indicator remains in negative territory.

H1 chart: During yesterday's session, the pair tried to consolidate below the 1.5980 level, but it failed, because this pair made a bullish rebound at that level. However, the GBPUSD pair is forming a higher low pattern, to continue falling until the level of 1.5925. If this pair manages to break the resistance at 1.5980, it is expected to rise to the level of 1.6031. The MACD indicator remains 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 1.5980, take profit is at 1.5925, and stop loss is at 1.6034.