FX.co ★ Daily analysis of GBP/USD for September 02, 2014

Daily chart: GBP/USD continues to find resistance at the 200-day moving average, so this pair could be a pullback in that level to fall to the support level of 1.6540. If GBP/USD manages to make a breakout at that level, we would expect a falling to the level of 1.6447. The MACD indicator continues to move in positive territory.

H4 chart: GBP/USD has formed a fractal in the resistance offered by the level of 1.6644, since this pair is trying to make a breakout at that level to climb to the next objective in the resistance level of 1.6692. GBP/USD is approaching to the 200-day moving average on this chart. The MACD indicator is entering overbought area.

H1 chart: this pair has found strong resistance in the 1.6629 level, due to the fact that GBP/USD is finding dynamic resistance in the 200-day moving average, so this pair could fall back to the support level of 1.6578. If the GBP/USD manages to be a breakout in the support level, the next target would be the 1.6544 level. The MACD indicator remains in negative 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.