FX.co ★ Daily analysis of GBP/USD for May 23, 2014

Daily chart: The pair performed a pullback to the 1.6920 level where the GBP/USD has formed a fractal. Now, this pair is likely to continue to make corrective movements in favor of the bullish trend. However, if the GBP/USD manages to make a breakout in the support level of 1.6851, it's expected to fall to the level of 1.6766. The MACD indicator is in neutral territory.

H4 chart: The GBP/USD remains above the support level of 1.6841 and for now, it is likely that this pair perform sideways movements below the resistance level of 1.6900. If GBP/USD manages to make a breakout at the level of 1.6900, it's expected to rise to the level of 1.6995. The MACD indicator is in negative territory.

H1 chart: The GBP/USD has made a bullish rebound above the 200 SMA, where is located the support level of 1.6850. If the pair manages to make a breakout on the resistance level of 1.6900, it's expected to rise to the level of 1.6950. On the other hand, if the GBPUSD executes a breakout level of 1.6850, it would be expected to drop to the level of 1.6800. 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 1.6900, take profit is at 1.6950, and stop loss is at 1.6850.