04, August 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British Pound continues to decline and set a new 7week low at 1.6821. The pound decrease advances dollar strengthening amid the weak UK real estate market data and BoE official's soft comments.

Three-week pound downtrend gradually fizzles out. The last few days the dollar strengthening against GBP comes at the low volumes. The corrective price growth up may be expected in the short term.

The price is finding the first support at 1.6825, the next one is at 1.6770. The price is finding the first resistance at 1.6860, the next one is at 1.6900.

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 downward movement will be until the price is under the Cloud.

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

Trading recommendations

The price is going down. Still we expect the growth. The potential growth targets are the resistance levels: 1.6900, 1.6950.