FX.co ★ Daily analysis of GBP/USD for August 05, 2015

On the daily chart, the pair is still looking for strong support above the 200 SMA, but it failed to reach a new daily timeframe's high several times. We expect further downside on the GBP/USD chart in coming days, but the pair seems to be trying to stay in overall bullish bias. The MACD indicator is turning to the negative territory.

The GBP/USD pair is still trapped in a sideways range between 1.5633 and 1.5562 on the H1 chart. The last level mentioned above could provide the pair with bullish momentum in order to re-test the resistance zone of 1.5633. The MACD indicator is still in the negative territory.

Daily chart's resistance levels: 1.5640 / 1.5777

Daily chart's support levels: 1.5543 / 1.5450

H1 chart's resistance levels: 1.5587 / 1.5633

H1 chart's support levels: 1.5562 / 1.5536

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.5587, take profit is at 1.5633, and stop loss is at 1.5541.