02, June 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound did not show independence, and in the news absence it showed the same volatility against the dollar as the euro. As a result, the "cable" nearly closed at opening prices. The GfK report announced an improvement in the consumer May confidence indicator to the level 0 from - 3, the Hometrack information showed that the housing prices continued to rise in May, although less rapidly, +0.5% m/m , 6.1 % y/y vs. 0.6 % m/m , 6.0 % y/y in April. While this facts support the sterling, and it grew up a bit against the dollar. However, the further events development is already dictated by the U.S. indicators results and it can shift the emphasis in favor of "greenback".

The price is finding the first support at 1.6730, the next one is at 1.6670. The price is finding the first resistance at 1.6800, the next one is at 1.6860.

The price is below the Cloud and above the Chinkou Span. The downward movement will be continued as long the price is under the Kijun-Sen.

The MACD histogram is in negative area. The indicator is decreasing showing the sell signals.

Trading recommendations

Please be advised to go short. Our targets are 1.6670 and 1.6630.