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07.08.201401:42 Forex Analysis & Reviews: Daily analysis of GBP/USD for August 07, 2014

Long-term review

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Daily chart: The GBP/USD had a pullback near the level of 1.6888, so this pair is trying to break out, hits a level of support at 1.6851 again. If successful, it is expected to fall to the level of 1.6766, which would strengthen the current bearish trend in GBP/USD. The MACD indicator is in negative territory.

H4 chart: This pair remains below the resistance level of 1.6900, with no significant changes involving a change in the current trend of the GBP/USD. However, during yesterday's session, the GBP/USD makes a rebound on the support level of 1.6820 that is likely to push the pair up to the resistance level of 1.6900. The MACD indicator is entering neutral territory.

H1 chart: The GBP/USD is trying to consolidate below the 1.6850 level, so the next target on the bearish road is the support level of 1.6800. If the GBP/USD manages to make a breakout at that level, it would be expected to fall to the support level of 1.6750. The MACD indicator remains in positive 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 1.6850, take profit is at 1.6900, and stop loss is at 1.6800.

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