06, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British currency, as well as the Euro, spent a day in a narrow side corridor and closed the trading versus the dollar almost neutrally with very little benefit.

The pair found the support in the area 1.6200–1.6260. Only the break and fixing below 1.6200 will cancel positive expectations and will open the way to a further decline to the support 1.5850-1.5900.

The northern movement is canceled after the pair broke the cloud. We have a weak and confirmed sell signal. The price is below the cloud and above the Chinkou Span.

The downward movement will be in a force as long the price is below the Kijun -sen. Tenkan-Sen is crossing Kijun-sen down. Both lines are directed downwards.

Bollinger bands indicator is broadening and directed downwards.
The MACD is in a negative zone, showing a decrease.

Trading recommendations

The upward correction volumes are decreasing. Purchasing power is aimed to restore the price to the nearest resistance level, located at 1.6400.