02, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound resumed the growth. Obviously, the "bullish" sentiment prevails. The bulls have been cheered about a possible policy tightening imminent, and it continues to maintain its popularity in the market. The UK economic news did not contradict the positive opinion on the sterling, the British households and companies lending rose like the business lending in May according to the BoE report.

The pound upward trend is still actual, despite the decreasing volumes. The strong resistance level of 1.7055 breakthrough gave up a good signal for the bullish trend continuation.

The price is finding the first support at 1.7115, the next one is at 1.7080. The price is finding the first resistance at 1.7160, the next one is at 1.7220. There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen. The MACD histogram is in the positive territory.

Trading recommendations

We suppose the pair will go to 1.7160 first. Having overcome the first target the price might go upwards to 1.7220.