FX.co ★ Daily analysis of GBP/USD for April 24, 2014

Daily chart: The GBP/USD has dropped below the resistance level of 1.6851 and now this pair is finding support on the level of 1.6766. By now, we should wait for this pair to begin to form a pattern that can reveal the trend that the GBP/USD could continue for the next few days. The MACD indicator is in the overbought zone.

H4 chart: This pair has made a breakout at the support level of 1.6785 and now, the GBP/USD is trying to consolidate below that level. However, it is very likely that this pair will make a bullish rebound at current levels and up to the resistance level of 1.6822. For now, the bullish outlook still remains alive. The MACD indicator is in negative territory.

H1 chart: The GBP/USD is making a bullish rebound above the 200 SMA and now this pair is trying to climb up to the resistance level of 1.6800. If the pair manages to consolidate above this level, it would be expected to rise to the level of 1.6850. For now, we must wait for the GBP/USD made a breakout at that level to continue placing buy orders. 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 1.6800, take profit is at 1.6850, and stop loss is at 1.6750.