FX.co ★ Daily analysis of GBP/USD for February 21, 2014

Daily chart: This pair is trying to make a breakout at the support level of 1.6663, as the GBP/USD has been very weak this week, so it is very likely to fall last until the support level of 1.6540 in the medium term. However, remember that the GBP/USD is forming a lower high pattern, which would be a corrective movement for the current trend. The MACD indicator is in the overbought zone.

H4 chart: The GBP/USD remains above the support level of 1.6644, but the short-term bearish bias remains intact, so it is very likely that this pair will try to reach the 200 SMA. However, consolidation does not rule over the bullish trend line at the 1.6730 level and the pair is trying to climb up to the resistance level of 1.6820. The MACD indicator is entering negative territory.

H1 chart: The GBP/USD has made a bullish rebound above the support level of 1.6629, which is close to the 200 SMA. Now this pair is encountering strong resistance near the 1.6680 level, where the point of control is. If this pair makes a breakout at the 1.6700 level, it's expected to rise to the level of 1.6750. The MACD indicator is in neutral 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 1.6700, take profit is at 1.6750, and stop loss is at 1.6650.