Intraday technical levels and trading recommendations on GBP/USD for August 8, 2014

Breakdown of the DEMAND level around 1.6975 allowed quick decline of the GBP/USD pair towards the price zone of 1.6800-1.6820.

At retesting the price zone of 1.6800-1.6820, considerable bullish recovery took place. This bullish movement was formed below 1.6880.

On Wednesday, the GBP/USD pair declined again towards 1.6827. This came after the release of the British manufacturing data, which came below expectations.

In case the bears keep applying bearish pressure, we expect the pair to visit the price level of 1.6760 ( previous broken top established in February 2014 ).

As expected, the price zone between 1.7140 - 1.7170 provided evident bearish price action.

A pattern of multiple tops was confirmed after breakdown of the depicted bullish channel. Moreover, successive bearish targets were already reached last week.

As expected, the GBP/USD bears could have kept their SELL positions up to the price level of 1.6830 where the current Demand Level is located.

The price zone of 1.6830 - 1.6800 remains a significant zone as it corresponds to a previous consolidation zone established in June. However, 4H breakdown of this zone exposed price level around 1.6760 and 1.6730 to come next.