09, April 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

British currency rose against the dollar from strong technical levels and against the general market sentiment "against the dollar." The industrial production supported the pair. The index showed the highest result for three years. The pound rose more that 60 points.

The volumes are high that means that the growth may be continued.

The first support is 1.6670, the next one is 1.6600. The resistance is at 1.6730.

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 Cloud is directed upwards. The Tenkan-Sen and the Kijun-Sen are directed upwards.

MACD histogram is in a positive area showing a clear buy signal.

Trading recommendations

We expect a slowdown in speed. The pair grew by more than 60 points. The correction chances are pretty high. The bounce down will be to the level 1.6670. The indicators confirm an upward movement to the level 1.6800.