FX.co ★ Daily analysis of GBP/USD for July 08, 2014

Daily chart: The GBP/USD has made a pullback at the resistance level of 1.7170. Now, this pair is trying to stay strong in the bullish outlook with the formation of a lower high pattern. If GBP/USD manages to make a breakout at the level of 1.7100, it's expected to fall to the support level of 1.7000. The MACD indicator is in the overbought zone.

H4 chart: This pair has consolidated below the bullish trend line that is located at the 1.7160 level. However, the GBP/USD pair is likely to fall to the support level of 1.7062. If the pair manages to make a breakout at that level, it would be expected to fall to the 1.6995 level in the short term. The MACD indicator is in the negative territory.

H1 chart: The GBP/USD has made a breakout at the level of 1.7150. Now, this pair is finding support in the vicinity of the point of control. If the pair manages to make a breakout at the support level of 1.7100, it's expected to fall to the level of 1.7050, which is below the 200 SMA. MACD indicator is in the positive 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 1.7150, take profit is at 1.7200, and stop loss is at 1.7100.