FX.co ★ Daily analysis of GBP/USD for August 11, 2014

Daily chart: The GBP/USD has begun to form a higher low pattern above the support level of 1.6766, because in the previous session, the pair had a fairly steep decline. If the GBP/USD manages to make a breakout at that level, it would be expected to fall to the support level of 1.6663. The MACD indicator is in negative territory.

H4 chart: This pair is trying to make a breakout at the level of 1.6762, where the GBP/USD has begun to form a fractal. This pair is likely to make a rebound at current levels, although the bearish force is becoming more solid. If the GBP/USD manages to make a breakout at the level of 1.6841, it is expected to rise to the level of 1.6900.

H1 chart: The GBP/USD has made a successful breakout at the level of 1.6800 and now, the GBP/USD is trying to form a bearish pattern below that level. If the pair manages to make a breakout at the support level of 1.6750, it would be expected to fall to the 1.6700 level in the short term. The MACD indicator is in neutral territory.

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 1.6750, take profit is at 1.6700, and stop loss is at 1.6800.