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07.08.2015 01:29 AM
Daily analysis of GBP/USD for August 07, 2015

On the daily chart, GBP/USD did a breakout below the support level of 1.5543 and 200 SMA, a move which is currently giving momentum to the bears in order to consolidate, for at least in the mid-term. The support zone of 1.5450 could be tested again and if a breakout happens there, it would be expected to fall until the level of 1.5358.

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The short term outlook is turning lower now, as the pair is consolidating below the 200 SMA on the H1 chart with a bearish pattern. If GBP/USD does a breakout on the support level of 1.5484, it could fall to the level of 1.5411 in coming hours. However, a rebound could happen at current levels, pointing to a test of the 200 SMA.

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Daily chart's resistance levels: 1.5543 / 1.5640

Daily chart's support levels: 1.5450 / 1.5348

H1 chart's resistance levels: 1.5545 / 1.5587

H1 chart's support levels: 1.5484 / 1.5411

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 1.5484, take profit is at 1.5411, and stop loss is at 1.5557.

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