GBPUSD Daily Analysis for August 28, 2013

Daily chart: The GBPUSD touched the support at 1.5506 level and now, this is trying to break that level. If the pair manages to break that level, it is expected to fall to the level of 1.5407. On the other hand, the GBPUSD may conduct a bullish rebound in this support, because close to that, it’s located 200 moving average and this could rise to resistance level 1.5642. However, if the GBPUSD manages to consolidate below the 200 day moving average and preferably below the support at the 1.5407 level, one would expect this pair to begin a strong bearish trend in this chart. The MACD indicator is negative and extreme overbought territory.

 

H4 chart: This pair is trying to approach the 200 day moving average near the support at the 1.5436 level. If this pair manages to break the resistance level of 1.5604, it is expected to rise to the level of 1.5698. Furthermore, if the GBPUSD manages to break the support level of 1.5411, it is expected to drop to the level of 1.5341. The MACD indicator remains in negative territory, but it is possible that this enter neutral territory in the coming hours.

 

H1 chart: The GBPUSD is encountering strong resistance at the 1.5534 level, which houses the Point of Control (POC), which is holding any rallies in this pair. If the GBPUSD manages to break the support at the 1.5501 level is expected to fall to the level of 1.5460. By other hand, if the GBPUSD managed to break the resistance at the 1.5590 level (above the SMA 200), it’s expected to rise to the level of 1.5632. The MACD indicator is in neutral and in extreme overbought territory, which could support our bearish outlook for this pair.

 

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 1.5501, take profit is at 1.5460, and stop loss is at 1.5541.

Source: www.instaforex.com

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