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06.06.2014 04:10 AM
Daily analysis of GBP/USD for June 06, 2014

Daily chart: GBP/USD has made a breakout at the resistance level of 1.6766, so the next target is the resistance level of 1.6851. Now, this pair is likely to start making corrective movements as GBP/USD could be in overbought zone. However, the bullish momentum is very strong, so we could recommend to keep putting buy orders. The MACD indicator is entering neutral territory.

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H4 chart: This pair is trying to consolidate above the 200 SMA and now, the GBP/USD is about to make a breakout at the resistance level of 1.6822. If successful, it is expected to rise to the level of 1.6841. On the other hand, if the pair takes a pullback at current levels, it's expected to fall to the support level of 1.6785. The MACD indicator is in positive territory.

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H1 chart: GBP/USD is consolidating above the support level of 1.6800, so it is very likely that this pair rise to the resistance level of 1.6850. If GBP/USD manages to make a breakout on the resistance level of 1.6850, it's expected to rise to the level of 1.6900. On the other hand, if this pair makes a breakout at the support level of 1.6800, it's expected to fall to the 1.6750 level. The MACD indicator is in the overbought zone.

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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 1.6850, take profit is at 1.6900, and stop loss is at 1.6750.

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