06, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound continues to demonstrate its stability and maintains its position near the high levels reached earlier. The latest news impacted the currency. However, the pressure on sterling was of transient nature and as a result the "cable" closed the trading against the dollar by the almost opening prices - with only minor losses.

Currently, the price is trading above intermediate resistance level of 1.7165, which is now managed to break up. Together with the level breakthrough the buyers failed to update this week maximum level of 1.7177

The price is finding the first support at 1.7160, the next one is at 1.7115. The price is finding the first resistance at 1.7220, the next one is at 1.7265.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Kijun-Sen is horizontal, the Tenkan-Sen is directed upwards. The upward movement will be until the price is above the Kijun-Sen.

The MACD histogram is in the positive territory. The histogram is decreasing.

Trading recommendations

We believe the growth will be continued. The first target is the level 1.7220. We do not exclude a corrective bounce to 1.7115.