FX.co ★ Daily analysis of GBP/USD for July 30, 2014

Daily chart: The GBP/USD had a strong bearish momentum below the resistance level of 1.7000. The next target for this pair is the support level of 1.6851, which could be reached this week, due to the weakness that the GBP/USD has presented in recent days. However, be cautious when placing sell orders at current levels, as this pair may perform a rebound to the level of 1.7000. The MACD indicator is in negative territory.

H4 chart: The GBP/USD is trying to form a bearish pattern below the resistance level of 1.6995. It is very likely that this pair will fall to the support level of 1.6920 in the coming hours, because the GBP/USD remains strong in the current bearish bias below the 200 SMA. MACD is in negative territory.

H1 chart: This pair has made a breakout at the support level of 1.6950, so far, the GBP/USD is trying to form a higher low pattern. The next target for this pair is the support level of 1.6900. If GBP/USD manages to make a breakout at that level, it would be expected to fall to the support level of 1.6850. The MACD indicator is oversold.

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 1.6900, take profit is at 1.6850, and stop loss is at 1.6950.