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18.06.2014 03:17 AM
Daily analysis of GBP/USD for June 18, 2014

Daily chart: The GBP/USD has made a little pullback on the resistance level of 1.7000, so now this pair is forming a bullish pattern. Probably for the rest of the week, the GBP/USD will perform sideways movements to strengthen the bullish pattern further. However, if the pair manages to make a breakout at that level, it would be expected to rise to the level of 1.7169. The MACD indicator is in positive territory.

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H4 chart: The GBP/USD continues to move in low range below the resistance level of 1.6995. If the pair manages to make a breakout at that level, it would be expected to rise to the level of 1.7105, which would be a bullish consolidation. However, if the GBP/USD manages to make a breakout at the support level of 1.6900, it's expected to fall to the level of 1.6841. The MACD indicator is in negative territory.

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H1 chart: The GBP/USD has fallen to the support level of 1.6950, where the pair is forming a point of control. If GBP/USD manages to make a breakout at that level, it would be expected to fall to the support level of 1.6900, which would approximate the 200 SMA. MACD is entering neutral territory.

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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 1.7000, take profit is at 1.7050, and stop loss is at 1.6950.

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