FX.co ★ Daily analysis of GBP/USD for July 28, 2014

Daily chart: The GBP/USD has made a breakout of the support level of 1.7000, which clears the way for the pair to fall to the support level of 1.6851 in the medium or long term. The weakness of the GBP/USD in this chart could continue, as the bearish trend has been strong from the resistance level of 1.7169. However, a consolidation above the level of 1.7000, could lead this pair up to a resistance level of 1.7170.

H4 chart: For now, the GBP/USD stays below the 200 SMA with the formation of a bearish pattern, as the next target of this pair would be the support level of 1.6920. If the GBP/USD makes a breakout at the support level of 1.6900, it's expected to fall to the support level of 1.6841. The MACD indicator is oversold.

H1 chart: Friday's session was somewhat slow for GBP/USD movements, which remained below the resistance level of 1.7000, the next target is the support level of 1.6950. A breakout at that level could make this pair to fall to the support level of 1.6900 in the short term.

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.