08.08.201401:29 Forex Analysis & Reviews: Daily analysis of GBP/USD for August 08, 2014

Long-term review

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Daily chart: The GBP/USD continues to form a higher low pattern below the resistance level of 1.6851, where the pair tried to perform a bullish rebound but failed. If the GBP/USD manages to make a breakout at the support level of 1.6766, it would be expected to fall to the level of 1.6663. The MACD is in negative territory.

H4 chart: The GBP/USD has not made significant changes in this chart, as this pair continues to find support at 1.6820 level. If the GBP/USD manages to make a breakout at that level, it would be expected to fall to the level of 1.6762. However, caution when placing sell orders is currently recommended. The MACD indicator is entering negative territory.

H1 chart: This pair again has made a breakout at the level of 1.6850, so far, the GBP/USD is trying to fall to the support level of 1.6800. If the pair manages to consolidate below that level, the next target would be the support level of 1.6750, which would be a bearish consolidation in the medium term.

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 1.6800, take profit is at 1.6750, and stop loss is at 1.6850.

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