01, April 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound strengthened steadily versus the dollar last week. The pair keeps strengthening this week too. Lack of clearly negative data on the British economy and the completely positive results supported the British currency.

The first support is 16600, the next one is at 1.6555. The resistance is located at 1.6670, the next one - 1.6730.

There is a strong and confirmed buy signal. The price is above the Cloud and above the Chinkou Span.

The upward movement will be continued as long the price is above the Kijun-Sen. The Cloud is turning upwards. The Tenkan-Sen and the Kijun-Sen are growing.

MACD histogram is in a positive area now, the signal line is in a histogram. The indicator is growing showing a buy signal.

Trading recommendations

The level 1.6600 is the key mark. If the pair breaks up this level, the pound will start strengthening to 1.6670. Then, it may grow to 1.6730.