07, October 2014

GBP/USD (a 4-hour chart)

 GBP/USD (a 4-hour chart)

General overview

The sterling tries to grow. The British pound was also under pressure from the US dollar last week and it is worth noting that the "cable" was sold more actively than the euro. Obviously, the investors started to doubt the fact that the Bank of England would start to tighten its policy in a short-term.

The downward trend stopped at the level of 1.5950.

The price is finding the first support at 1.5950, the next one is at 1.5870. The price is finding the first resistance at 1.6030, the next one is at 1.6100.

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 downward movement and the Kijun-sen shows a horizontal 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 approach to the levels of 1.6050 or 1.6100 may lead to the price rebound down. The potential rebound targets are the levels of support 1.5950, 1.5870.