FX.co ★ Daily analysis of GBP/USD for February 25, 2014

Daily chart: This pair has had a bullish start in the week as during Monday's session the GBP/USD made a bullish rebound above the 1.6620 level. Now it is facing resistance at the level of 1.6663. If it manages to break that level, it is expected to rise to 1.6766. However, keep in mind that the pair could be forming a bearish pattern. The MACD indicator is in the overbought zone.

H4 chart: The GBPUSD has found support on the bullish trend line near the 1.6600 level. Now, it is very likely to manage to break the resistance level of 1.6667. If successful, it is expected to rise to the level of 1.6750. Moreover, if the pair does break the support level of 1.6592, it is expected to fall to the level of 1.6516. The MACD indicator is in neutral territory.

H1 chart: The GBP/USD has made a bullish rebound above the 200 SMA and the support level of 1.6629. Now, if it manages to break the resistance level of 1.6700, it's expected to rise to the level of 1.6750. On the other hand, we note that it is forming a point of control at current levels. If the pair manages to break the support level of 1.6629, it is expected to fall to the level of 1.6578 . The MACD indicator is in positive 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.