FX.co ★ 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.

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.

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.

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.