FX.co ★ Daily analysis of GBP/USD for August 04, 2014

Daily chart: The GBP/USD has made a breakout in the support level of 1.6851, clearing the way for the pair to fall to the support level of 1.6766 in the medium term. For now, if the GBP/USD manages to make a breakout at that level, it would be expected to fall to the support level of 1.6663. The MACD indicator is in negative territory.

H4 chart: This pair is trying to consolidate below the resistance level of 1.6841. If GBP/USD manages to make a breakout in the support level of 1.6820, next target would be the level of 1.6762. For now, the GBP/USD could perform a bullish rebound, because this pair is in oversold zone.

H1 chart: The GBP/USD is trying to form a higher low pattern below the resistance level of 1.6850. If the pair manages to consolidate below the 1.6800 level, it's expected to fall to the support level of 1.6750. On the other hand, if the GBP/USD manages to make a breakout at the level of 1.6850, next target would be the level of 1.6900.

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 1.6800, take profit is at 1.6750, and stop loss is at 1.6850.