08, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound is stable and continues to stay near the high levels that had been reached earlier. The pound fell slightly the other day, but it is due to technical factors that continue to influence the market developments through the strong resistance.

The upward trend was stopped at the resistance level of 1.7175, from which there was a short-term price down pullback. The main rollback target is the support level of 1.7115, which was twice tested for a strength.

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 a neutral territory.

Trading recommendations

The rising trend line is at 1.7115 support that is an additional obstacle. If the breakthrough does happen the level of 1.7175 rebound is expected. The 1.7175 break will open the way to 1.7200, 1.7250.