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08.05.2014 08:43 AM
Daily analysis of GBP/USD for May 08, 2014

Daily chart: GBP/USD has made a bearish rebound at the resistance level of 1.7000, so far, this pair is forming a lower high pattern. Near that resistance level, the GBP/USD formed a fractal, which is part of the corrective movements in this pair. If GBP/USD manages to consolidate above the 1.7000 level, it's expected to rise to the level of 1.7169. The MACD indicator is in positive territory.

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H4 chart: This pair is approaching the bullish trend line nearby the 1.6940 level, which could serve as support in the GBP/USD. However, if the pair manages to make a breakout in the trend line, it is expected to fall to the support level of 1.6900. On the other hand, if the pair manages to make a breakout at the level of 1.7050, at which one bullish trend line is, it's expected to rise to the level of 1.7150. The MACD indicator is in negative territory.

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H1 chart: The GBP/USD is finding support at the 1.6950 level, where it is forming a point of control. If GBP/USD manages to make a breakout at the level of 1.6950, it's expected to fall to the level of 1.6900. However, the bullish outlook remains alive while the GBP/USD stays above the 200 SMA. MACD indicator is oversold.

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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 1.7000, take profit is at 1.7050, and stop loss is at 1.6950.

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