FX.co ★ Daily analysis of GBP/USD for August 06, 2014

Daily chart: The GBP/USD has consolidated above the support level of 1.6851, where it is likely to begin to form a higher low pattern. If GBP/USD manages to make a breakout at that level, it would be expected to fall to the support level of 1.6766, which is the nearest target on the bearish road. The MACD indicator is in negative territory.

H4 chart: The GBP/USD stays below the resistance level of 1.6900 with a tendency to strengthen the bullish bias, as this pair is trying to climb back up the 200 SMA, near the resistance level of 1.6995. The MACD indicator remains in positive territory, so the GBP/USD could rise to that level.

H1 chart: This pair has found support at the 1.6850 level, because the GBP/USD is trying to climb up to the resistance level of 1.6900. If the pair manages to make a breakout at that level, the next target would be the resistance level of 1.6950, which is above the 200 SMA. The MACD indicator is in positive 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 1.6850, take profit is at 1.6900, and stop loss is at 1.6800.