04, April 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound 7-trading days growing up versus the dollar was stopped on yesterday's trading. The British currency fell down, and the reason could be the weaker than expected manufacturing activity data in the U.K., which pushed the investors to lock the profits, and the presence of the strong technical resistance levels to which the pair grew.

The first support is 16600, the next one is 1.6555. The first resistance is 1.6670, the next one is 1.6730.

There is a strong and confirmed buy signal. The price is above 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 turning upwards. The Tenkan-Sen and the Kijun-Sen are horizontal.

MACD histogram is still in a positive area, it merged with its signal line, it does not currently show clear signals.

Trading recommendations

If the price consolidates below the resistance 1.6670, it may continue the downward trend in the short term. The potential targets are 1.6600, 1.6555.