03, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

In the absence of the news the pound was traded under the influence of external data, as the result the currency slightly strengthened versus the dollar. The pair pound/dollar like the euro/dollar fell under the geopolitical events pressure and then grew on a weak U.S. economy release.

The situation remains the same for this pair. Its growth is still limited by the resistance 1.6750.

There is a weak buy signal. The price is above the cloud and below the Chinkou Span.
The upward movement will be in a force as long the price is above the Kijun-sen. The Cloud is growing.
The Tenkan-Sen and the Kijun-Sen are growing.

Bollinger Bands indicator points to a direction change. Its bands are broadening.
MACD is in the positive area. The indicator is slowly growing

Trading recommendations

The false break of the support level 1.6640 led to a return to a rising trend line 1.6750. The trend line will currently play as a strong support, from which the rebound to intraday level 1.6730 is possible. Its breakthrough will open the way to 1.6730 1.6800.