08, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The GBP business activity index in the service sector came positive. The positive news were picked up by the market participants and worked out - what, above all, says about the 1.6940 sloping resistance line up breakthrough.

The volumes are not the highest growth. We expect a corrective pullback in the short term. The target is a sloping support line 1.6945 - 1.6950. The support line retest is more likely to lead to a rebound upwards with a further uptrend continuation.

The resistance level 1.6910 retest is expected in the short terms.

The support is 1.6940, and the next one is 1.6860. The resistance is 1.7000.There is a strong and confirmed buy signal. 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 MACD histogram is pointing up, indicating the current uptrend movement rates.

Trading recommendations

The potential targets for a growth are the levels: 1.7000, 1.7050, and 1.7100.