07, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound spent a day in the lateral trading versus the dollar and stayed at late neutral positions. The news showed just the negative dynamics, instead of positive that added some pressure on the pound.

The pair remains above the support in the area 1.6200-1.6260; that still makes possible a rebound to the resistance 1.6620 with the possible outlet to the key resistance 1.6750.

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 narrowing and directed downwards.
The MACD is in a negative zone, showing a growth.

Trading recommendations

The prolonged consolidation below the strong resistance level 1.6330 is a signal to a bounce downward. The first target is the daily support 1.6220.