FX.co ★ GBP/USD: daily analysis for December 04, 2013

Daily chart: The GBP/USD is forming a bullish pattern below the resistance at 1.6447 level, but it seems that this pair will begin a phase of corrective movements. If the pair manages to break that level, it is expected to rise to the level of 1.6540, which would be something forceful to consolidate the bullish trend in the GBP/USD. Moreover, if this pair does break the support at the level of 1.6326, it is expected to fall to the level of 1.6235. The MACD indicator is entering extreme overbought zone.

H4 chart: The GBP/USD stays above the bullish trend line, near the level of 1.6365, but the pair continues to find strong resistance at the level of 1.6435. If the pair manages to break that level, it is expected to rise to the level of 1.6560 in the medium term. On the other hand, we must be alert to any bullish breakout in the trend line, which could lead to GBP/USD fell to 200 SMA. The MACD indicator is still in negative territory.

H1 chart: This pair continues to find resistance at 1.6419 level and now, the GBP/USD is trying to form a bearish pattern, which we hope will not be completely finished, because this pair formed a fractal near the level of support 1.6375. If this pair managed to break the resistance level at 1.6419, which is expected to rise to the level of 1.6464. The MACD indicator is still in 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 1.6419, take profit is at 1.6464, and stop loss is at 1.6375.