02, April 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound continues growing versus the dollar. Lack of negative economic data and any expectations about the BoE politics in the U.K., supported the “cable”. The pair got an impulse to buying from the Fed representative D. Yellen who stated with some pessimism about uncertainty of the U.S. labor market recovery.

The first support is 1.6600, the next one is 1.6555. The resistance is 1.6670, the next one is 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 still in a positive area, it merged with its signal line, it does not currently show clear signals.

Trading recommendations

After the level 1.6600 break up, new buying targets will be opened. But before this the British pound will continue to grow up, it is necessary to observe the maximum yesterday update 1.6683. The yesterday's trading session high level update will lead to the upward trend continuation.

The main goal of the growth should become the resistance level 1.6730.