07.08.201418:38 Forex Analysis & Reviews: Intraday technical levels and trading recommendations on GBP/USD for August 7, 2014

Long-term review

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Breakdown of the DEMAND level around 1.6975 allowed quick decline of the GBP/USD pair towards the price zone of 1.6800-1.6820.

At retesting the price zone of 1.6800-1.6820 that appeared yesterday, considerable bullish recovery took place. This bullish movement was formed below 1.6880.

Yesterday, the GBP/USD pair declined again towards 1.6827. This came after the release of the British manufacturing data, which came below expectations.

In case the bears keep applying bearish pressure, we expect the pair to visit the price level of 1.6812 (the bottom established on August 4) one more time.

As expected, the price zone between 1.7140 - 1.7170 provided evident bearish price action.

A pattern of multiple tops was confirmed after breakdown of the depicted bullish channel. Moreover, successive bearish targets were already reached last week.

As expected, the GBP/USD bears could have kept their SELL positions up to the price level of 1.6830 where the current Demand Level is located.

The price zone of 1.6830 - 1.6800 remains a significant zone as it corresponds to a previous consolidation zone established in June.

On Monday, a valid buy entry was suggested around 1.6820. The first bullish target is located around 1.6920. This position remains valid as we stick to our SL below 1.6770.

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