empty
 
 
02.10.2014 01:42 AM
Daily analysis of GBP/USD for October 02, 2014

At the H4 chart, GBP/USD has formed a fractal at the resistance level of 1.6247, which has made this pair consolidate its bearish trend and it is likely that the GBP/USD will continue weakening in the coming hours, even if the support level of 1.6140 is quite strong. Recall that the GBP/USD found strong resistance at the 200-day moving average a few days ago, so this new bearish momentum could continue for a few more weeks in this pair. However, there is some indecision in the current trend, which is reflected in the MACD indicator.

This image is no longer relevant

H4 chart's resistance levels: 1.6247 - 1.6435

H4 chart's support levels: 1.6051 - 1.6004

We can see that the GBP/USD intends to extend the bearish trend in the H1 chart, because this pair performed a strong pullback at the level of 1.6250 so again, the GBP/USD is trying to make a breakout at the support level of 1.6170 to fall to the next target level of 1.6117 in the bearish road. The GBP/USD has been following a bearish trend line for several days, below the 200 SMA. The MACD indicator is moving into negative territory which could favor the progression bearish force.

This image is no longer relevant

H1 chart's resistance levels: 1.6252 – 1.6216

H1 chart's support levels: 1.6170 – 1.6117

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the resistance level is at 1.6170, take profit is at 1.6117, and stop loss is at 1.6223.

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $9000 more!
    In May we raffle $9000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback