10, January 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Despite a slight recovery our short-term expectations are still associated with the support range 1.6180-1.6300. In the future if the pair stays above the lower limit of the range we expect a resumption of a growth with a target to break above 1.6620 testing the key resistance 1.6750.

The northern movement is confirmed and strong. The price is fixed above the cloud and below the line Chinkou Span.

The upward movement will be in a force as long the price is above the Kijun -sen. Kijun –sen and Tenkan-Sen are horizontal. Tenkan-Sen is crossing Kijun-sen down.

Bollinger bands indicator is turning down.
The current downward movement is confirmed and by MACD histogram.

Trading recommendations

Volumes near the resistance level 1.6465 indicate purchasing power lowering.
We believe the pair will bounce from 1.6465 to 1.6385. The break of 1.6385 will allow sellers to open short orders to a rising trendline 1.6330.