08, April 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

This week main event is the Bank of England’s decision regarding the monetary policy future which will be announced on Thursday. The changes are not expected still some tensions will be present on the market.

The volumes near the weekly uptrend line 1.6555 gradually reduced down forming a downward trend weakening. The price came to the trend line inside a descending channel where the price remains now.

The first support is at 1.6555, the next one is at 1.6500. The resistance is at 1.6600.

There is a weak and confirmed buy signal. The price is in 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 turning upwards. The Tenkan-Sen is directed upwards and the Kijun-Sen is horizontal.

MACD histogram is in a negative area it does not show clear signals.

Trading recommendations

The 1.6555 uptrend line retest is expected the next two days.