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Daily analysis of GBP/USD for August 05, 2016

The pair plummeted from weekly highs after the BoE interest rate decision as the central bank finally decided to cut rates by 25 bps. Now, GBP/USD is trading below the 200 SMA and is very close to the key support zone of 1.3085, where there is an active demand zone. A lower breakout could deliver more bearish bias toward the 1.3000 psychological level.

1470343651_GBPUSDH1.png

H1 chart's resistance levels: 1.3148 / 1.3266

H1 chart's support levels: 1.3085 / 1.3000

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 1.3148, take profit is at 1.3266 and stop loss is at 1.3028.

The material has been provided by InstaForex Company - www.instaforex.com