FX.co ★ Daily analysis of GBP/USD for September 01, 2014

Daily chart: GBP/USD is trying to rise up to the 200-day moving average, which is close to the resistance level of 1.6 668. However, it is worthy to remember that GBP/USD is trying to form a bearish pattern, so this pair could fall back to the support level of 1.6540. The MACD indicator is entering into positive territory.

H4 chart: This pair is trying to make a breakout at the resistance level of 1.6615. If it succeeds, it would be expected to rise to the level of 1.6644. However, we should take into account that GBP/USD is conducting corrective movements, so it is very likely that this pair will climb up to the 200-day moving average. The MACD indicator stays in positive territory.

H1 chart: GBP/USD has performed a bullish rebound at the support level of 1.6578, so now this pair is trying to find resistance at the 200 moving average. If GBP/USD manages to make a breakout at the resistance level of 1.6629, one would expect it to rise to the level of 1.6 700. The MACD indicator is entering neutral territory.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.6578, take profit is at 1.6544, and stop loss is at 1.6611.