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FX.co ★ Daily analysis of GBP/USD for February 05, 2014

Daily analysis of GBP/USD for February 05, 2014

Daily chart: The GBP/USD has found support on the bullish trend line and now it's trying to consolidate above the level of 1.6326. However, this pair could be forming a bearish pattern to continue falling, but we should consider that the support level of 1.6326 is very strong, so you should be cautious when placing sell orders above this level. The MACD indicator is still in negative territory.

Daily analysis of GBP/USD for February 05, 2014

H4 chart: The GBP/USD is forming a higher low pattern below the level of 1.6336, which is pretty strong resistance, as the pair has formed a fractal there. If it manages to break the support level at 1.6247, it's expected to fall to the level of 1.6218. On the other hand, we should be pending before a breakout at the level of 1.6336, which could lead the pair to rise again to the level of 1.6441. The MACD indicator is in extreme oversold zone.

Daily analysis of GBP/USD for February 05, 2014

H1 chart: This pair failed to consolidate below the level of 1.6291 and still remains below the resistance level of 1.6331. If the pair manages to break that level, which is also a point of control, it's expected to rise to the level of 1.6375. However, we recommend that you to follow the trend, as the GBP/USD has encountered strong resistance in the POC. The MACD indicator is in positive territory.

Daily analysis of GBP/USD for February 05, 2014

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 1.6291, take profit is at 1.6252, and stop loss is at 1.6329.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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