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19.05.2014 07:14 AM
Daily analysis of GBP/USD for May 19, 2014

Daily chart: The GBP/USD is trying to make a correction in its current bearish trend, as this pair has made a bullish rebound above the support level of 1.6766. If the pair manages to make a breakout at the resistance level of 1.6851, the bullish bias on GBP/USD could return to the medium and long term. The MACD indicator is in negative territory.

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H4 chart: This pair is consolidating above the 200-day moving average, but the GBP/USD has formed a fractal at the resistance level of 1.6841, which could be an impediment to the development of the bullish bias. However, if the GBP/USD manages to make a breakout at that level, it would be expected to rise to the level of 1.6900. The MACD indicator is in positive territory.

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H1 chart: GBP/USD is facing resistance at the 200-day moving average, so it is very likely that this pair will make a bearish rebound at that level and fall to the support level of 1.6800. If GBP/USD manages to make a breakout at that level, it would be expected to fall to the level of 1.6750, which is close to the point of control. The MACD indicator is in negative 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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