01, August 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The sterling continued to be under the external information influence due to the lack of UK news and like other majors fell against the dollar the other day. It is possible that investors will continue to analyze the Fed data and resume expectations on the U.S. labor report which is likely to determine the lateral GBP/USD trading consolidation. The price went up to the trendline at lower volumes which speaks about the downward trend relief. The first 1.6900 mark retest did not bring any positive results for the bears.

The price is finding the first support at 1.6860, the next one is at 1.6825. The price is finding the first resistance at 1.6900, the next one is at 1.6950.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is decreasing.

Trading recommendations

If the pair does not break the level of 1.6860 down we expect the growth to 1.6950.