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Daily analysis of GBP/USD for August 16, 2016

The pair is posting more declines below the 1.3000 psychological level, and we can see further weakness toward the support level of 1.2798. The 200 SMA on the H1 chart is pointing to the downside and it can put pressure on GBP/USD. However, if we see a rebound, then the next hurdle will be the 1.2950 level. MACD indicator is entering neutral territory, and that should lead to a sideways range.

GBPUSDH1.png

H1 chart's resistance levels: 1.3000 / 1.3085

H1 chart's support levels: 1.2894 / 1.2798

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 1.2894, take profit is at 1.2798 and stop loss is at 1.2987.

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