GBPUSD Daily Analysis for August 16, 2013

Daily chart: The GBPUSD achieves in break the resistance level at 1.5506. Now, this pair is trying to break the resistance level at 1.5642. It is unlikely that today’s session, the pair that manages to break this resistance, because the movement has lasted quite bullish and it is very likely that this begins to form a lower high pattern. If the GBPUSD manages to break that resistance, would be expected to rise to the level of 1.5746. For now, bearish movements could make this pair, would be very slight, because the current bullish trend is very strong and we must consider that the GBPUSD is consolidating above the 200 day moving average. The MACD indicator remains in positive territory.

 

H4 chart: This pair is forming a lower high pattern, above the support at the 1.5604 level. It is likely that for the next week, GBPUSD will rise to the resistance level at 1.5752. However, if the GBPUSD breaks the support level at 1.5604, it is expected to drop to the level of 1.5512. On the other hand, the bullish trend in this chart is very strong and the consolidation of the 200 day moving average is proof of that. The MACD indicator is entering overbought levels, but is still in positive territory, so we must be cautious.

 

H1 chart: The GBPUSD has consolidated heavily above the 200 day moving average and the Point of Control (POC) near the support at the 1.5460 level. Now, this pair is trying to fall to the support level 1.5590 in, something that is quite possible, due to the current overbought presents this pair. However, if the GBPUSD managed to break the resistance level of 1.5632, it is expected to rise to the level of 1.5686. Furthermore, if the GBPUSD manages to break the support level of 1.5590, it is expected to drop to the level of 1.5534. The MACD indicator is negative and extreme overbought 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 1.5632, take profit is at 1.5686, and stop loss is at 1.5578.

Source: www.instaforex.com

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