03, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

The pound made an attempt to rise against the dollar at the beginning of this week. Earlier this week, the market sentiment was on the sterling side which probably wad due to the technical factors and some policy tightening strengthening expectations by the Bank of England.

The buyers managed to come to the resistance level of 1.6640. This growth happened amid the negative GBP fundamental data. Then the sellers managed to break through the support level of 1.6570 and to reduce the price to the support level of 1.6500.

The price is finding the first support at 1.6500, the next one is at 1.6440. The price is finding the first resistance at 1.6570, the next one is at 1.6640.

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 downward movement.

The MACD histogram is in a negative territory. The price is decreasing.

Trading recommendations

The potential decrease target is the support level of 1.6440.