FX.co ★ Technical analysis of GBP/USD for July 31, 2014

Technical outlook and chart setups:

1. The GBP/USD tested 1.6900 yesterday before closing the day above 1.6900. Finally it looks like the pair has finished its first down leg, and a meaningful retracement can be expected towards 1.7080 levels.

2. Support is seen at 1.6880 (interim), followed by 1.6750 and lower while resistance is seen at 1.6950, followed by 1.7000 and higher respectively.

3. The structure indicates that GBP/USD could stage a counter rally into 1.7080 levels before reversing.

Trading recommendations:

Long now, stop at 1.6850, target is at 1.7080.

Good luck!