03, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound fell versus the dollar. It is quite possible that along with information from the Fed the pressure on the sterling was supported by the data on its domestic economy.

The pair descended in the direction of the nearest support 1.6410. The breakthrough and fixing below it confirms the decrease to the stronger support in the area 1.6200–1.6250.

The northern movement is canceled after the pair broke the cloud. We have a weak and confirmed sell signal. The price is below the cloud and above the Chinkou Span.

The downward movement will be in a force as long the price is below the Kijun -sen. Tenkan-Sen is crossing Kijun-sen down. Bothe lines are directed downwards.

Bollinger bands indicator is broadening and directed downwards.
The MACD is in a negative zone, showing a decrease.

Trading recommendations

The first retest of the support level 1.6450 did not lead to a breakthrough, there was a short-term rebound upward. In the near future the second retest 1.6450 is expected.