04, June 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound/dollar spent a very boring session yesterday – it was traded in a narrow range and closed the day almost at opening prices, but with a dollar benefits mark. The "islands" statistics indicated unsatisfactory dynamics, still at the same time, showed that the economy recovers.

The short-term 1.6765 resistance level retest which was observed last Friday, was accompanied with the consolidation. The continued consolidation has not led to a rapid price bounce while the trading is still going on in the strong resistance area.

The price is finding the first support at 1.6730, the next one is at 1.6670. The price is finding the first resistance at 1.6800, the next one is at 1.6860.

The price is below the Cloud and above the Chinkou Span. The Kijun-Sen is directed downward. The Cloud is descending. The downward movement will be continued as long the price is under the Kijun-Sen.

The MACD histogram is in negative area. The indicator is decreasing showing the sell signals.

Trading recommendations

We are waiting for the second 1.6765 level retest. If the retest is false, it will be followed by a downward price bounce, back to the support level 1.6700.