30.07.201401:32 Forex Analysis & Reviews: Daily analysis of GBP/USD for July 30, 2014

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Daily chart: The GBP/USD had a strong bearish momentum below the resistance level of 1.7000. The next target for this pair is the support level of 1.6851, which could be reached this week, due to the weakness that the GBP/USD has presented in recent days. However, be cautious when placing sell orders at current levels, as this pair may perform a rebound to the level of 1.7000. The MACD indicator is in negative territory.

H4 chart: The GBP/USD is trying to form a bearish pattern below the resistance level of 1.6995. It is very likely that this pair will fall to the support level of 1.6920 in the coming hours, because the GBP/USD remains strong in the current bearish bias below the 200 SMA. MACD is in negative territory.

H1 chart: This pair has made a breakout at the support level of 1.6950, so far, the GBP/USD is trying to form a higher low pattern. The next target for this pair is the support level of 1.6900. If GBP/USD manages to make a breakout at that level, it would be expected to fall to the support level of 1.6850. The MACD indicator is 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 1.6900, take profit is at 1.6850, and stop loss is at 1.6950.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.