31.07.201703:02 Forex Analysis & Reviews: Technical analysis of GBP/USD for July 31, 2017

Overview:

• In the four-hour chart, the GBP/USD pair is in the bullish trend from the support levels of 1.3036 and 1.3091. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 1.3091, which coincides with a golden ratio (78.6% of Fibonacci). Consequently, the first support is set at the level of 1.3091. So, the market is likely to show signs of a bullish trend around the spot of 1.3091/1.3100. In other words, buy orders are recommended above the spot of 1.3100 with the first target at the level of 1.3230. Furthermore, if the trend breaks through the first resistance level of 1.3230, the pair will move upwards continuing the development of the bullish trend to the level 1.3307 in order to test the weekly resistance 2. On the other hand, it would also be wise to consider where to place a stop loss; this should be set below the second support of 1.2940.