05, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

The British economy good data maintained the sterling for a very short time. The attempt to start the GBP/USD growth quickly stopped after the statistics indicated the British services field activity growth rate efforts. The market participants were waiting for the ECB’s meeting results.

More recently, the historical level of 1.6485 formed from 2014.03.21, was a sufficiently great support. But after the ECB announced that they decided to reduce the interest rate the pound significantly fell.

The price is finding the first support at 1.6340, the next one is at 1.6270. The price is finding the first resistance at 1.6440, the next one is at 1.6500.

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 and form a “Death Cross”. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is going down.

Trading recommendations

The approach to the level of 1.6440 may lead to a price rebound down. The potential rebound target is the level of support 1.6270.