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Daily analysis of GBP/USD for October 18, 2016

GBP/USD had a consolidation phase on Monday, as the support level of 1.2112 remained untouched. A bearish trend line from September 30th high is still acting as dynamic resistance and we're focusing on a possible breakout below the 1.2179 level. However, if the cable manages to break the 1.2229 level, then it can test the 1.2312 level.

1476734203_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