07, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound rose on last session. Obviously, the absence of negative factors for the pound from the economic statistics, and any threats to see weakness in the BoE monetary policy, helped the market to opt for the pound, which is now also the most profitable currency among majors.

The support is at the level 1.6670. The resistance levels are 1.6750, then 1.6810.

There is a weak buy signal that will be canceled if the pair breaks the Cloud down. 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 Cloud is growing.
The Tenkan-Sen and the Kijun-Sen are horizontal.

Bollinger Bands indicator points to a flat. Its bands are narrowing being directed aside.
MACD is in the positive area. The indicator is slowly decreasing

Trading recommendations

The main part of the trading week was held in the flat.
The third time level 1.6760 retest is expected. If the retest is false we expect a bounce down with the target 1.6585.