07, August 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound has shown a resilience trading and has grown against all its major opponents. However, his achievements with respect to the American "greenback" have been relatively modest, only 20 or so points, although the index of activity in the economy key area – the services recorded a solid growth despite the fact that no changes are expected. This fact supported the British currency.

We should not expect any growth activity, as investors are waiting when the Bank of England should says about the monetary policy prospects.

The price is finding the first support at 1.6770, the next one is at 1.6700. The price is finding the first resistance at 1.6860, the next one is at 1.6900.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is correcting.

Trading recommendations

The pair is planning to go upwards. The potential growth targets are the resistance levels: 1.6900, 1.6950.