06, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The “bears” were unable to break through the daily uptrend lower bound 1.6840. The lower bound (intermediate uptrend line) retest led to the price rebound up further with the “bullish” trend continuation.
The trading volumes indicate upward trend easing for the second month that could lead to a deep pullback down soon. However, for this to happen, the “bears” should at least try to break thorough the hard support level 1.6760 and weekly upward trend line.

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 pointing down, indicating the current downtrend movement rates.

Trading Recommendations

The trading continues to move in the upward direction. Consequently, the rising growth potential is moving upwards. The main targets are the levels: 1.6900, 1.6950, 1.7000.