FX.co ★ Daily analysis of GBP/USD for July 14, 2014

Daily chart: The GBP/USD pair continues to fall below the resistance level of 1.7169. So, it is likely to be the next support level of 1.7100. If GBP/USD manages to make a breakout at that level, it would be expected to fall to the support level of 1.7000, which could slow down the current road bullish on this pair. The MACD indicator is in the negative territory.

H4 chart: The GBP/USD pair is moving in sideways below the resistance level of 1.7179. So, it is likely to fall to the support level of 1.7062. If the GBP/USD pair manages to make a breakout at that level, it would be expected to fall to where the 200 SMA is set. MACD indicator is in the neutral territory.

H1 chart: The GBP/USD pair has made a rebound at the support level of 1.7100. Again, this pair is trying to consolidate above the 200 SMA. If successful, it is expected to rise to the resistance level of 1.7150, where probably the GBP/USD pair will start forming a bullish pattern. The 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.