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Daily analysis of GBP/USD for August 12, 2016

The pair is looking to extend the decline towards the 1.2894 price zone, as the weakness is still alive and keep pushing lower the Cable below the 200 SMA at H1 chart. A consolidation below the 1.3000 level will mean a bearish trend that could last for a mid-term basis. In another scenario, a retracement at current stage could send the GBP/USD pair to test the 1.3085 level.

GBPUSDH1.png

H1 chart's resistance levels: 1.3085 / 1.3148

H1 chart's support levels: 1.3000 / 1.2894

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 1.3000, take profit is at 1.2894 and stop loss is at 1.3106.

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