FX.co ★ Daily analysis of GBP/USD for July 16, 2014

Daily chart: The GBP/USD pair managed to recover above the 1.7090 level. Now, this pair is trying to make a breakout at the resistance level of 1.7170. If successful, it is expected to rise to the level of 1.7403 in the medium term, which would lead the GBP/USD pair further from the 200 SMA. MACD indicator is in the negative territory.

H4 chart: The GBP/USD made a bullish rebound above the support level of 1.7062 and now this pair is trying to make a breakout at the level of 1.7180. If successful, it is expected to rise to the level of 1.7300, which would be a bullish consolidation above the trend line. The MACD indicator is in the positive territory.

H1 chart: This pair is forming a lower high pattern below the 1.7150 level, because the GBP/USD found resistance next to the 1.7175 level. If GBP/USD manages to make a breakout at that level, it is expected to rise to the level of 1.7200. The MACD indicator is entering the negative 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.