GBPUSD Daily Analysis for September 06, 2013

Daily chart: The GBPUSD made a bearish rebound in the level of 1.5642, after having encountered strong resistance at that level due to the bullish momentum that had this pair for yesterday. However, this can be the formation of a lower high pattern, so that the GBPUSD continue to rise and eventually break the resistance level at 1.5642. If it breaks, it is expected to rise to the resistance level at 1.5746. Furthermore, if GBPUSD falls more over, it is expected to drop spends 1.5535 level. The MACD indicator is in neutral territory.

 

H4 chart: This pair is trying to consolidate above support at the 1.5604 level, having encountered strong resistance near 1.5640 level. It is very likely to continue solid GBPUSD bullish trend today, because this pair has respected the bullish trend line close by. If GBPUSD manages to consolidate above this level, it is expected to rise to resistance level at 1.5698. The MACD indicator remains in negative territory and extreme overbought area.

 

H1 chart: This pair made a bullish rebound near the 200 day moving average, after falling from the resistance at the 1.5632 level to the level of 1.5565. Now, this pair could break the resistance level 1.5632 and if it succeeds, 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 extremely oversold and entering positive territory, which could support our bullish outlook.

 

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullishh 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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