FX.co ★ Daily analysis of GBP/USD for July 29, 2014

Daily chart: The GBP/USD stays below the 1.7000 level, largely unchanged during yesterday's session, so this pair is still trying to form a bearish pattern to extend the drop to support level of 1.6851 in the medium term. The GBP/USD could resume the bullish trend if makes a rebound at current levels. The MACD indicator is in negative territory.

H4 chart: This pair continues to find resistance at the level of 1.6995, which is below the 200 SMA. The next target in the bearish road is still the support level of 1.6900. If GBP/USD manages to make a breakout at that level, the next target would be the level of 1.6841. The MACD indicator is in neutral territory.

H1 chart: No major changes in the GBP/USD intraday trend, so it is very likely that in the coming hours, the pair will attempt to make a breakout at the level of 1.6950. If successful, it is expected to fall to the support level of 1.6950. On the other hand, if the GBP/USD manages to make a breakout on the resistance level of 1.7000, it's expected to rise to the level of 1.7050.

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 1.6950, take profit is at 1.6900, and stop loss is at 1.7000.