05, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British Pound updated the 1.6857 maximum on decreasing volumes. The price stopped above 1.6870 resistance line which currently stands as a good support.

The fundamental data were positive. However, this did not lead to the upward trend continuation as the USD fundamental data were positive as well.

The support is 1.6850, and the next one is 1.6800. The resistance is 1.6900.

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 MACD histogram is is horizontal, indicating the current corrective movement rates.

Trading Recommendations

The trend remains upward despite the weak volumes. The closest level is at 1.6870. If the price bounces back to this level it is more likely to lead to a rebound up. The potential targets for a growth will be 1.6900, 1.6950, 1.7000.