02, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound continued its downward movement. The reason was the fundamental data high volatility (quarterly GDP and annual GDP). The statistics showed the payments balance reducing deficit in the third quarter.

There was a price fall against the increased volume and the pair reached the support level of 1.6180. Here we can see the price consolidation.

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

We believe the decrease will be continued now. The first target is the level of 1.6180. The way to the mark 1.6100 will be opened after this breakthrough.