08, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound has grown against the dollar. The reason for such increased pound interest was the strong technical levels presented by the strong support as the UK news had no important messages.

We expect the industrial production indices for August. According to the forecasts, there will be good results that can keep the pound interest at the high level. The pair GBP/USD is testing the resistance level of 1.6100.

The price is finding the first support at 1.6030, the next one is at 1.5950. The price is finding the first resistance at 1.6100, the next one is at 1.6180.

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 an upward 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 consolidating.

Trading recommendations

The downward bounce potential target is 1.5950.