FX.co ★ Daily analysis of GBP/USD for July 17, 2014

Daily chart: The GBP/USD remains in the bullish trend without major changes, because this pair has tried to make a breakout on the resistance level of 1.7169 but has not succeeded. If the pair manages to consolidate above this level, the next target would be the level of 1.7290. However, it is likely that the GBP/USD will make a pullback at current levels. The MACD indicator is in negative territory.

H4 chart: This pair made a rebound on the support level of 1.7062, which is close to the 200-day moving average, so GBP/USD is likely to try a breakout at the 1.7180 level, because this pair is forming a lower high pattern. GBP/USD remains bullish while above the 200 SMA. The MACD indicator is entering neutral territory.

H1 chart: The GBP/USD has moved sideways during the last hours, above the 200 SMA. Now this pair is trying to consolidate above the resistance level of 1.7150, which has been shown to be a strong level. However, it is likely that the GBP/USD will fall to the support level of 1.7100. The MACD indicator is in 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 1.7150, take profit is at 1.7200, and stop loss is at 1.7100.