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Daily analysis of GBP/USD for August 23, 2016

The cable had a very bullish day yesterday, consolidating gains above the 200 SMA on the H1 chart. Currently, a resistance can be found at the 1.3170 level where a breakout should happen to rally towards the 1.3258 level. Overall, our view is still on the bulls' side, as GBP/USD rebounded above the moving average.

1471896147_GBPUSDH1.png

H1 chart's resistance levels: 1.3170 / 1.3258

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 lies at 1.3170, take profit is at 1.3258 and stop loss is at 1.3081.

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