GBPUSD Daily Analysis for August 27, 2013

Daily chart: GBPUSD is forming a possible lower high pattern, above the support at the level of 1.5506 and above the SMA 200. Today’s session could be crucial in the development of the trend trend in this pair, because this is still above the SMA 200. However, if the pair manages to break the support at the 1.5506 level, would be expected to begin to develop a bearish trend in the medium term and fall to support at the 1.5407 level. The MACD indicator remains in extreme overbought territory and negative, so that the force could be very bearish on this pair.

 

H4 chart: The GBPUSD continues without definite trend, because it remains within the 1.5604 and 1.5512 levels. However, it is very likely that the GBPUSD try to get to the 200 day moving average near the support at the 1.5436 level and for this, this pair would have to break the support at the 1.5512 level. On the other hand, if the GBPUSD managed to break the resistance at the 1.5604 level, would be expected to rise again until the resistance level 1.5698. The MACD indicator is in neutral and in extreme oversold territory, which could support a bullish outlook on this pair.

 

H1 chart: Close to the 200 day moving average and resistance at the 1.5590 level, has formed a Point of Control (POC), which has served as a strong resistance for this pair. It is very likely that this pair fall to support at the 1.5534 level during today’s session. If the pair manages to break this support, it is expected to fall to the level of 1.5501. Furthermore, current trends suggest this pair (bearish), because it is very likely that the GBPUSD conduct a bearish rebound at current levels. 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 1.5534, take profit is at 1.5501, and stop loss is at 1.5568.

Source: www.instaforex.com

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