FX.co ★ Technical analysis of GBP/USD for August 29, 2014

Trading recommendations:

• According to the previous events, the price of GBP/USD is going to move between the levels of 1.6635 and 1.6640.
• The prices of 1.6635 and 1.6640 are going to form resistance and support respectively. Also, it should be noticed that the price of 1.6538 will form a triple bottom today.
• So, buy above the level of 1.6538 which represents the triple bottom in H1 chart with the first target at 1.6615. Then, the trend will be able to continue towards the level of 1.6635.
• Notwithstanding, the stop loss should be set at 1.6513.
• The level of 1.6635 represents strong resistance on August 29, 2014. Moreover, the same level coincides with the ratio of the 50% Fibonacci retracement levels.
• As it is known, above the level of 50% Fibonacci always confirms for the bullish market.

Notes:

• Resistance sets at 1.6694 and minor resistance sets at 1.6635.
• We expect a range of 68 pips today.
• Volatility: 110.73