09, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

There was a corrective pullback. The sloping support line 1.6950 was the price target from which it will bounce up with the continuation of the bullish trend in the longer term.

GBP/USD was filled with particularly important fundamental data from both the pound and the U.S. dollar yesterday. High volatility with strong levels of breakdown are expected on the base of these fundamental factors.

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 current week maximum 1.6995 update can be considered as a signal to upward trend continuation. The levels: 1.7050, 1.7100 will be growth potential targets.