23.10.201402:29 Forex Analysis & Reviews: Daily analysis of GBP/USD for October 23, 2014

Long-term review

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The GBP/USD is trying to form a bearish pattern below the resistance level of 1.6051, because this pair has made a pullback near the 200 SMA it is likely that in the next few hours the GBP/USD will fall to the level of 1.6004, where this pair has to perform a breakout of the support level of 1.6004 to fall to the level of 1.5951. However, the GBP/USD could find strong support at current levels. The MACD indicator is entering negative territory.

Daily chart's resistance levels: 1.6146 / 1.6235

Dailychart's support levels: 1.6046 / 1.5883

On the H1 chart, we can clearly see that this pair is trying to form a lower low pattern pro below the 200-day moving average, so the GBP/USD could make a breakout at the support level of 1.6031. If successful, it is expected to fall to the 1.5980 level in the short term. The GBP/USD remains below the resistance level of 1.6075.

H1 chart's resistance levels: 1.6075/ 1.6117

H1 chart's support levels: 1.6031 / 1.5980

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 1.6031, take profit is at 1.5980, and stop loss is at 1.6083.

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