10, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pair is growing above the support at 1.6200-1.6260that still makes it is likely to rebound to the resistance 1.6620 with further coning to the key resistance 1.6750.

Only the break and consolidation below 1.6200 will cancel the positive expectations and open the way to a further drop to the support at 1.5850-1.5900.

There is a strong and confirmed sell signal. The price is below the cloud and above the Chinkou Span.
Kijun-sen is crossing Tenkan-Sen down. Bothe lines are turning upwards. The downward movement will be in a force as long the price is below the Kijun -sen.

Bollinger bands indicator is narrowing and directed downwards.
The MACD is in a negative zone, showing a growth.

Trading recommendations

We believe the pound will consolidate at the level 1.6410. If the pair does not break this level up we can expect a bounce down to the support 1.6245.