FX.co ★ Technical analysis of GBP/USD for August 1, 2014

Overview:

• The price of the GBP/USD pair has been not stable because the trend has been moving downwards from the price of 1.6940 in H4 chart. Additionally, the pair is going to be trapped between 1.6940 and 1.6851. Furthermore, it should be noted that the resistance has already set at the price of 1.6940 and the support is placed at 1.6851 (minor support on August 1, 2014). As a result, the GBP/USD pair is likely to start showing the signs of the bearish market at the level of 1.6940 because the market will indicate a bearish opportunity at the spot of 1.6940, so the level will be acting as strong resistance today. In other words, it will be a good decision to sell below the price of 1.6940 with the first target of 1.6850 in order to try to close below the weekly pivot point. It will call for the downtrend to continue its bearish movement towards 1.6821 to forming the strong support in H4 chart. On the other hand, the stop loss should be placed above 1.6966.