06, June 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British sterling did not show much volatility yesterday having closed the day at almost opening prices. Obviously, the weak and the strong economic indicators results in both countries maintain the balance and leave low activity on the pair. The data published yesterday a bit supported the sterling as the key economic sphere continued to grow in May.

The price is finding the first support at 1.6730, the next one is at 1.6670. The price is finding the first resistance at 1.6800, the next one is at 1.6860.

The price is in the Cloud and above the Chinkou Span. The Kijun-Sen is directed upward. The Cloud is descending. The downward movement will be continued as long the price is in the Cloud.

The MACD histogram is in negative area. The indicator is grwoing.

Trading recommendations

From a technical point of view, the British pound may again fall to the support level that was tested the day before yesterday, but had not been broken down.

If sellers can break the support level 1.6730, we should expect the approach to the daily support level 1.6670.
The growth upwards can cancel the downward correction.