09, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The last week was a breakdown for the British pound. The sellers managed to break through the two strong support levels located at levels of 1.6440 and 1.6340 at high volumes.

The active dollar strengthening against the GBP led to the descending channel leaving and a gap. In the future, we expect the bearish trend continuation.

The price is finding the support at 1.6100. The price is finding the first resistance at 1.6180, the next one is at 1.6270.

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 and the Kijun-sen show a downward movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is decreasing.

Trading recommendations

The trend is directed down. We expect the level of 1.6100 testing soon.