01, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound partly compensated its losses incurred earlier against the dollar after the UK positive economic data publication. The August consumer lending amounted to £0.898 billion that exceeded the forecasts, but turned out to be worse than the July values total 1.108 billion.

The British pound is correcting upward at the low volumes. The price movement priority direction is a downtrend.

The price is finding the first support at 1.6180, the next one is at 1.6100. The price is finding the first resistance at 1.6270, the next one is at 1.6340.

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 horizontal movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

After the trend line 1.6270 breakthrough down the way to the support 1.6180 will be opened.