FX.co ★ Daily analysis of GBP/USD for April 18, 2014

Daily chart: The GBP/USD has made movements in low range above the support level of 1.6766, due to the low volatility that has occurred on holidays in various parts of the world. However, the bullish outlook remains alive, as this pair is forming a bullish pattern. The MACD indicator is in positive territory.

H4 chart: This pair has dropped to the support level of 1.6785, but in the last hours, the GBP/USD has made a bullish rebound that has allowed this pair to climb up to the resistance level of 1.6822. If GBP/USD manages to make a breakout at that level, it willwould be expected to rise to the level of 1.6900. The MACD indicator is in negative territory.

H1 chart: The GBP/USD remains above the 200 SMA and the support level of 1.6750, so the bullish bias continues to dominate this pair. Now, the GBP/USD is trying to make a breakout on the resistance level of 1.6800. If successful, it is expected to rise to the level of 1.6850. The MACD indicator is in positive 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 1.6850, take profit is at 1.6900, and stop loss is at 1.6800.