04, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound fell like euro. We believe that an attitude to the pound is based on the fact that the Bank of England, unlike the ECB, decided to tighten its policy. The British regulator top management thinks to rise rates earlier than it was thought at once, if the inflation pressure on the Islands will start to grow again.

There is a weak buy signal that will be canceled if the pair breaks the Cloud down. The price is in the cloud and above the Chinkou Span.

The upward movement will be continued as long the price is above the Kijun-sen. The Cloud is growing.
The Tenkan-Sen and the Kijun-Sen are horizontal.

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 pair wants to consolidate above the resistance 1.6750. If it is successful that will open the road to test the next important resistance 1.7040. Otherwise resumption of correction is possible.