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14.05.2014 05:54 AM
Daily analysis of GBP/USD for May 14, 2014

Daily chart: The GBP/USD has made a breakout at the support level of 1.6851, so this pair could fall to the support level of 1.6766. However, caution should be exercised when placing sell orders, as the GBP/USD could perform a bullish rebound at current levels and go up to the resistance level of 1.7000. The MACD indicator is in negative territory.

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H4 chart: The GBP/USD has found support in the bullish trend line nearby to the support level of 1.6822. For now, this pair remains above the 200-day moving average, though the GBP/USD is approaching this level. However, if the pair manages to make a breakout at the l 1.6822 level, it's expected to fall to the level of 1.6785. The MACD indicator is in negative territory.

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H1 chart: This pair has consolidated below the 200 SMA and the resistance level of 1.6850. If GBP/USD manages to make a breakout at the support level of 1.6800, it's expected to fall to the level of 1.6750, which would strengthen the current bearish outlook. The MACD indicator is in positive territory.

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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 1.6800, take profit is at 1.6750, and stop loss is at 1.6850.

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