Daily analysis of GBP/USD for May 22, 2014

Daily chart: The GBP/USD has made a successful breakout at the level of 1.6851, so far, the next target for this pair will be the resistance level of 1.7000 in the medium term. However, it is expected that the GBP/USD will start to form a bullish pattern, because this pair has been very bullish in recent days. The MACD indicator is in neutral territory.


H4 chart: The GBP/USD
has found resistance at the level of 1.6900, after this pair has
consolidated above the support level of 1.6841. Now, the GBP/USD is
finding support at the bullish trend line. If the pair manages to
make a breakout at the 1.6900 level, it’s expected to rise to the
level of 1.6995. The MACD indicator is in positive territory.


H1 chart: This pair
has consolidated above the 200 SMA and the support level of 1.6850,
where the point of control is. However, the GBP/USD has tried
to make a breakout on the resistance level of 1.6900, but has not
succeeded. However, if the pair manages to consolidate above this
level, it’s expected to rise to the level of 1.6950.


Trading recommendations for today: Based on the H1 chart,
place buy (long) orders only if the GBP/USD pair breaks a bullish
candlestick; the resistance level is at 1.6900, take profit is at
1.6950, and stop loss is at 1.6850.

The material has been provided by InstaForex Company – www.instaforex.com