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21.08.2014 02:00 AM
Daily analysis of GBP/USD for August 21, 2014

Daily chart: The GBP/USD pair continues strenghtening the bearish trend below the moving average of 200. This pair is likely to fall to the support level of 1.6540. If the GBP/USD pair manages to make a breakout at that level, it would be expected to fall to the level of 1.6447. For now, it is advisable to wait for the GBP/USD pair to make a breakout at that level, to continue placing sell orders. The indicator MACD is staying in the negative territory.

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H4 chart: The GBP/USD pair held a pullback at the resistance level of 1.6644. Now, this pair is trying to make a breakout at the support level of 1.6583. If the GBP/USD pair manages to make a breakout at the 1.6553 level, it would be expected to fall to the support level of 1.6464.

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H1 chart: This pair has filled the bullish gap left open this week. So, now the GBP/USD pair is trying to form a higher low pattern below the resistance level of 1.6629. If the GBP/USD pair manages to make a breakout at the support level of 1.6578, it would be expected to fall down to the level of 1.6544. The MACD inciator is entering the negative territory and oversold levels.

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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 1.6578, take profit is at 1.6544, and stop loss is at 1.6612.

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