FX.co ★ Daily analysis of GBP/USD for July 07, 2014

Daily chart: The GBP/USD stays below the resistance level of 1.7169 where the pair is forming a lower high pattern, because the GBP/USD has made sideways movements in recent days. By now, we should wait for a breakout of this pair at that level to continue placing long orders. The MACD indicator is in positive territory.

H4 chart: The GBP/USD continues to find support on the bullish trend line which is near the level of 1.7135 and now the pair is trying to consolidate above this level. However, if the GBP/USD manages to make a breakout in the trend line, it is expected to fall to the support level of 1.7062. The MACD indicator is in negative territory.

H1 chart: This pair continues to move sideways above the point of control at the level of 1.7150. The GBP/USD is also trying to have a bullish momentum for a breakout on the resistance level of 1.7200 and up to the 1.7250 level. The MACD indicator is entering neutral territory.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.7200, take profit is at 1.7250, and stop loss is at 1.7150.