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Daily analysis of GBP/USD for October 13, 2016

The pair is still alive in the bearish bias on the H1 chart, but the resistance level of 1.2229 is capping further gains. Currently, the price is below the 200 SMA and a breakout below the support level of 1.2179 can put more downside pressure on the pair and push it towards the 1.2112 level which is the latest key area after "flash crash" suffered during the last week.

GBPUSDH1.png

H1 chart's resistance levels: 1.2229 / 1.2312

H1 chart's support levels: 1.2179 / 1.2112

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 1.2179, take profit is at 1.2112 and stop loss is at 1.2239.

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