08, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound continues to show a resistance to all the news coming from the outside market. Last Friday the sterling closed trading on opening prices against the dollar after a multidirectional consolidation in a narrow range. The pound support continued to provide good results for the economy, as evidenced by activity indicators, published on the week. PMI in all economy sectors - manufacturing, construction and services, had recognized that recovery, as new construction recorded a growth spurt.

The British Pound continues to actively grow up, breaking on its way the temporary resistance. At this point, such resistance is represented by the inclined line of 1.7125, above there is an ongoing auction.

The price is finding the first support at 1.7115, the next one is at 1.7050. The price is finding the first resistance at 1.7160, the next one is at 1.7220. There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen. The MACD histogram is in the positive territory. The indicator is decreasing.

Trading recommendations

The potential growth targets are the resistance levels 1.7200, 1.7250.