FX.co ★ Daily analysis of GBP/USD for July 22, 2014

Daily chart: The GBP/USD continues to weaken and the support level of 1.7000 is increasingly close to this pair, so it is advisable to follow the bearish bias on GBP/USD. However, we must stress that this pair could begin to form a bearish pattern to try and make a breakout at the support level. The MACD indicator is in negative territory.

H4 chart: This pair continues to find support on the level of 1.7062. However, the GBP/USD could perform a breakout at that level and fall to the support level of 1.6995, a level that is below the 200 SMA. MACD indicator remains in negative territory, but is entering neutral territory.

H1 chart: The GBP/USD had no major changes during yesterday's session, because this pair is moving within a range below the 200 SMA and the resistance level of 1.7100. If GBP/USD manages to make a breakout at the support level of 1.7050, it's expected to fall to the level of 1.7000, leading the pair to stay strong in the bearish trend for several days more. The MACD indicator is in neutral territory.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is at 1.7050, take profit is at 1.7000, and stop loss is at 1.7100.