04, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Pound has been consolidated below the current resistance level of 1.7165 for the third day. The buyers came to it against the steadily declining volumes backdrop. The pullback down can take place any moment now.

How strong the correctional wave will be we will know after the services sector business activity publication. The main lowering price target is the strong support level 1.7055.

The price is finding the first support at 1.7115, the next one is at 1.7080. The price is finding the first resistance at 1.7160, the next one is at 1.7220. There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen.

The MACD histogram is in the positive territory.

Trading recommendations

The rising trendline that is an additional resistance is located near the support level of 1.7115. We expect the consolidation near the level of 1.7050 - 1.7060.