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Daily analysis of GBP/USD for August 31, 2016

The pair is finding temporary support at the 1.3085 price zone, where the buyers are trying to resume the overall bullish structure. However, the resistance level of 1.3258 have proven to be strong, and it's a key hurdle for buyers across the board. If GBP/USD manages to break it, then we can see a consolidation above the 200 SMA, looking for the 1.3258 level as the next target.

GBPUSDH1.png

H1 chart's resistance levels: 1.3170 / 1.3258

H1 chart's support levels: 1.3085 / 1.3003

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 1.3170, take profit lies at 1.3258 and stop loss is at 1.3085.

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