FX.co ★ Daily analysis of GBP/USD for September 03, 2014

Daily chart: GBP/USD has made a breakout at the support level of 1.6540, by what this pair has been consolidated in the bearish trend since close, near the support level of 1.6447. If GBP/USD manages to make a breakout at that level, the next target would be the support level of 1.6326.

H4 chart: This pair encountered strong resistance at the 1.6644 level by what is now consolidating below the level of 1.6553. Now, GBP/USD could begin to form a bearish pattern. The MACD indicator remains in negative territory.

H1 chart: This pair is forming a lower low pattern below the resistance level of 1.6507. If GBP/USD manages to make a breakout at the support level of 1.6464, it's expected to fall to the level of 1.6419. The GBP/USD pair is far removed from the 200-day moving average. The MACD indicator is entering area of oversold.

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.