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29.08.2014 02:02 AM
Daily analysis of GBP/USD for August 29, 2014

Daily chart: GBP/USD continues trying to climb to the 200-day moving average, so this pair could climb to that level during the session today, but we should remember that GBP/USD is forming a higher low pattern. If this pair manages to make a breakout at the resistance level of 1.6668, it's expected to rise to the level of 1.6766. The MACD indicator is in oversold zone.

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H4 chart: This pair continues moving in the range below the resistance level of 1.6583, although the bearish trend remains strong. If GBP/USD manages to make a breakout at the 1.6644 level, the next target would be the 1.6693 level. The MACD indicator stays in positive territory.

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H1 chart: GBP/USD has again been consolidated above the support level of 1.6578, and this pair has made a pullback at the 200-day moving average. If this pair consolidates again below that support level, it would be expected to fall to the level of 1.6544. The MACD indicator into 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 1.6544, take profit is at 1.6507, and stop loss is at 1.6581.

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