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Daily analysis of GBP/USD for October 14, 2016

GBP/USD gained bullish momentum in Thursday's session, posting a fresh high around the 1.2255 level. In the overall picture, the Pound is still very bearish and threatening to test the lows made after the "flash crash" which occurred last week. If the pair does a breakout above the 1.2312 level, then it will be able to test the 200 SMA.

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, 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