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27.02.2014 01:52 AM
Daily analysis of GBP/USD for February 27, 2014

Daily chart: GBP/USD found support at the level of 1.6663. However, the bullish outlook remains alive in this pair, as the GBP/USD is making corrective movements and there is still the possibility that this pair will rise to the resistance level of 1.6766. On the other hand, a breakout at that support level could lead the GBP/USD to change the current trend in this chart. The MACD indicator is in the overbought zone and into negative territory.

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H4 chart: The GBP/USD stays above the bullish trend line near the 1.6630 level, so this pair remains robust in the bullish bias. However, if the pair manages to make a breakout at the 1.6667 level, it's expected to rise to the level of 1.6785. Moreover, the 200-day moving average is very close to this pair, so it is very likely that this pair will fall to that level. The MACD indicator is in negative territory.

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H1 chart: This pair made a bullish rebound above the 200-day moving average near the support level of 1.6629. However, this pair found resistance at the point of control near the 1.6690 level. However, if the GBP/USD can overcome that area, it would be expected to strengthen the bullish bias in this chart. The MACD indicator is in the oversold zone and into positive territory.

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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 1.6700, take profit is at 1.6750, and stop loss is at 1.6650.

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